Export Quotation & Profit Calculator (Incoterms® 2020)

About the Export Quotation & Profit Calculator (Incoterms® 2020)

An export price depends on where you hand the goods over. This calculator takes what one shipment costs you — the goods and their packing, loading, transport to the port, export clearance, terminal charges, the main sea or air freight, insurance, the charges at the port of arrival, onward transport, unloading, import clearance and, for DDP, the import duty and tax — and prices it under every one of the eleven Incoterms® 2020 rules, from EXW to DDP. Each rule counts only the costs it puts on you; your margin, the costs that follow the price (agent’s commission, bank charges, export credit insurance, the interest while you wait to be paid) and the exchange rate you enter turn it into a unit price in the buyer’s currency.

The page shows where you deliver and the risk passes, who pays what under each rule, your profit and margin, the price at which you break even and the exchange rate at which the profit is gone. Enter your RoDTEP or duty drawback rate on each line to see the profit with the incentive, or pass it on in a lower price. The quotation is laid out as you type — your letterhead, the buyer, the terms written as “CIF Hamburg, Germany, Incoterms® 2020”, the lines with their HS codes and prices, the total in words and other rules you offer.

Without a pass the result is a free preview: the quotation’s total in full, with the first rows of the rule table and of the lines, the first step of the price build-up, who pays what, and the quotation’s pages marked “MySmartCoPilot preview · not for use” with every other price hidden. The quotation PDF, the Excel workbook and the copied summary come with a Premium pass.

Common uses

• An exporter answering an enquiry with prices under the rules the buyer asked for, from one costing.
• Checking what moving from FOB to CIF or DDP adds to the price and what it does to the profit.
• Seeing how far the exchange rate can move before a quotation stops making money.
• Comparing the profit with RoDTEP or drawback kept against a price that passes it on.
• Sending a buyer a quotation with HS codes, terms of delivery, payment terms and other rules offered.

Who pays what under each rule

The Incoterms® 2020 rules say where the seller delivers the goods, when the risk passes and which costs each side pays; seven are for any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four for sea and inland waterway transport (FAS, FOB, CFR, CIF), as the International Trade Administration lists them. In short:

• EXW: the buyer loads the goods at your premises and clears them for export.
• FCA: you clear them for export and hand them to the buyer’s carrier, loaded at your premises or at another named place.
• FAS and FOB: you deliver alongside or on board the ship at the port of shipment.
• CFR and CIF, CPT and CIP: you pay the main carriage (and under CIF and CIP the insurance) to the destination, but the risk passes at shipment.
• DAP, DPU and DDP: you deliver at the named destination — unloaded under DPU, and cleared for import with duties and taxes paid under DDP.

The table on the page sets this out cost by cost, with notes where the usual practice decides (terminal charges under FCA, destination charges a C-rule freight contract includes). The sale contract always decides; this is a summary, not the rules’ text.

How each price is worked out

For each line: the goods and their packing, plus the line’s share of the shipment costs the rule puts on you (spread by value, weight, volume or quantity), plus duty and import tax under DDP. Your margin goes on the goods (the profit is then the same under every rule) or on everything. Insurance and the costs that follow the price are a share of the price itself, so they are solved for, not guessed: with the margin on the goods,

price = (goods ÷ (1 − margin) + shipment costs + duties × (1 − i)) ÷ (1 − i − k)

where i is the insurance premium × the insured share (110% of the price) and k the commission, bank charges, credit insurance and interest. The unit price is converted at your exchange rate and rounded up to the price step, so you never quote below your margin.

Insurance under CIF and CIP

Under CIF you buy insurance on Institute Cargo Clauses (C) at least, the minimum cover; under CIP it must be Institute Cargo Clauses (A), all risks (ICC). The rules ask for cover of at least the price plus 10%, which is why 110% is the default insured value here. Under DAP, DPU and DDP no rule asks for insurance, but the goods travel at your risk until you deliver them, so the calculator insures them on Clauses (A) unless you untick it. Enter your insurer’s premium rates for both covers.

Export incentives, GST and the exchange rate

• RoDTEP: DGFT publishes the rates as a share of the FOB value, some with a cap per unit, in Appendix 4R and Appendix 4RE (for exports by advance authorisation holders, EOUs and SEZ units). Enter your tariff item’s rate and cap on its line; duty drawback works the same way here.
• GST: an exporter that furnishes a letter of undertaking in FORM GST RFD-11 exports without paying IGST (rule 96A of the CGST Rules), so the costs here are before GST.
• The exchange rate is the one you enter: nothing is fetched, and rates move, so quote a validity date. The page shows the rate at which each quotation stops making a profit.

Duty and import tax under DDP

Under DDP you are the importer: you pay the destination’s duty and import tax, and you may need to register there. Most destinations charge duty on the CIF value; some, such as the United States, leave international freight and insurance out of the customs value (19 CFR 152.102): choose the value the destination uses. Import VAT or GST is worked out on the value plus duty; tick the box if you can reclaim it. For the buyer’s own landed cost, use the import landed cost calculator.

Trademark

Incoterms® and the Incoterms® 2020 logo are trademarks of ICC. Use of these trademarks does not imply association with, approval of or sponsorship by ICC. The Incoterms® Rules are protected by copyright owned by ICC.

Limitations

• Costs, freight, premiums, duty rates, incentive rates and the exchange rate are yours to enter: nothing is fetched, and the example’s figures are illustrations.
• A summary of who pays what, not the rules’ text: the sale contract and the carriage contract decide, and the full Incoterms® 2020 rules are ICC’s publication.
• Duty and import tax under DDP use one rate each for the whole shipment; check each product’s duty with the destination’s customs.
• One shipment at a time; the quotation is not a proforma invoice, a commercial invoice or a customs document — the commercial invoice generator makes the invoice.
• An estimate, not customs, tax or legal advice.

Privacy

On this device; its files download once

Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot. Downloads the spreadsheet reader, the PDF engine and its fonts from this site when they are first needed; your costs, prices and buyers never leave this browser.