How to Calculate CIF Price and Landed Cost for Spices
A worked example of turning a FOB spice price into CFR, CIF and landed cost per kg — freight, insurance on CIF + 10%, import duty and destination costs — with a free calculator.
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When suppliers quote FOB and your customers think in euros per kilo, you need to know your real cost. Use the free spice export price calculator or follow the steps below.
The build-up
| Step | Formula |
|---|---|
| FOB value | Price per tonne × tonnes |
| CFR value | FOB + sea freight |
| Insurance | (CFR × 1.1) × insurance rate |
| CIF value | CFR + insurance |
| Duty | CIF × duty rate |
| Landed cost | CIF + duty + destination costs |
Worked example
- Black pepper: USD 6,500/tonne FOB, 14 tonnes
- Freight: USD 1,800
- Insurance: 0.3%
- Duty: 0% (check your tariff)
- Destination costs: USD 900
| USD | |
|---|---|
| FOB | 91,000 |
| CFR | 92,800 |
| Insurance | ~306 |
| CIF | ~93,106 |
| Landed | ~94,006 |
That's about USD 6.71 per kg landed. At 1 USD = 0.92 EUR, it's about EUR 6.18 per kg.
Don't forget
- Currency moves: check rates with the currency converter
- Weight loss: moisture changes can cost weight. See the moisture calculator
- Testing and inspection costs
- Financing costs if you pay early or hold stock
See Incoterms explained.
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Buy Malabar spices from the source
Pyalm trades from Calicut (Kozhikode), the same coast these stories come from, and from Dubai, exporting spices, coffee and pulses to Europe and worldwide. Try our free black pepper quality checker and export price calculator, or see our products.
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