This CFR Freight Calculator helps international traders and e-commerce sellers compute total landed costs under CFR Incoterms. It factors product cost, freight, and currency conversion to determine the true cost per unit and total—essential for pricing and margin analysis. Use it to prepare quotes, validate invoices, and assess shipping options for cross-border trade.
CFR Freight Calculator
Calculate total landed cost under CFR Incoterms
How to Use This Tool
Enter your product's per-unit cost in the seller's currency, total freight charges to the destination port, and shipment quantity. Select the currency used for these values. If the buyer uses a different currency, choose "Other" and enter the exchange rate (how many buyer currency units equal one seller currency unit). Add any additional costs like export documentation or terminal handling fees if applicable. Click Calculate to see the total landed cost per unit and in total, both in seller's and buyer's currencies.
For accurate results, ensure freight charges include all shipping costs to the named port of destination as per CFR terms. Insurance is not included—CIF would add that separately.
Formula and Logic
Total Landed Cost (seller currency) = (Cost per Unit × Quantity) + Total Freight + Additional Costs
Cost per Unit (seller currency) = Total Landed Cost ÷ Quantity
Total Landed Cost (buyer currency) = Total Landed Cost (seller) × Exchange Rate
Cost per Unit (buyer currency) = Cost per Unit (seller) × Exchange Rate
The calculator assumes all costs are in the same seller currency. The exchange rate converts to the buyer's currency for comparison or invoicing.
Practical Notes
CFR (Cost and Freight) means the seller covers shipping costs to the destination port but risk transfers once goods are loaded onto the vessel. This calculator helps allocate freight fairly across units—critical for pricing strategies. When setting your selling price, aim for a gross margin of at least 20-30% after landed cost. Compare freight quotes from multiple carriers; ocean freight typically ranges $1,500-$5,000 per container depending on route. For e-commerce sellers, consider consolidating shipments to reduce per-unit freight. Always verify Incoterms version (2020 recommended) in contracts. Additional costs often include: export customs clearance ($100-300), terminal handling charges ($50-150 per container), and documentation fees ($50-100).
Why This Tool Is Useful
Many small businesses underestimate total landed costs, leading to eroded margins or unexpected losses. This calculator provides transparency into how freight and additional fees impact unit economics. It's particularly valuable when: preparing proforma invoices, evaluating supplier quotes that exclude freight, comparing shipping methods (air vs. sea), or negotiating with buyers who request CFR terms. By breaking down costs per unit, you can set competitive yet profitable prices in foreign markets and avoid the common pitfall of quoting based solely on product cost.
Frequently Asked Questions
Does CFR include insurance?
No. CFR covers cost and freight to the destination port only. Insurance is the buyer's responsibility unless you're using CIF (Cost, Insurance, and Freight). Add separate insurance costs to the "Additional Costs" field if you want to include them in your landed cost analysis.
How do I handle multiple currencies in a shipment?
Convert all costs to a single base currency (usually your local currency) before entering them. Use the exchange rate field only for converting the final total to the buyer's currency. For mixed-currency expenses (e.g., freight in USD, product cost in EUR), manually convert each to your base currency first.
What costs should I include in "Additional Costs"?
Include any fees beyond product cost and main freight: export customs clearance, terminal handling at origin, documentation fees, inland transportation to port, loading charges, and bank fees for letters of credit. Exclude import duties—those are paid by the buyer at destination.
Additional Guidance
Use this calculator alongside your commercial invoice to verify all cost components. For regular shipments, save typical freight rates per route to speed up future calculations. When quoting CFR prices to buyers, clearly state what's included and what's not—especially who bears origin charges. Monitor exchange rate fluctuations; a 10% currency shift can significantly impact profitability. Consider building a 2-5% contingency into your landed cost for unforeseen fees. Always confirm freight terms with your logistics provider—some include origin charges while others don't. For high-value goods, also calculate CIF to compare total cost with insurance included.