Incoterms landed cost comparison.

Incoterms (International Commercial Terms) define who pays what in international trade. Moving from EXW (Ex Works - buyer arranges everything) to DDP (Delivered Duty Paid - seller arranges everything) shifts costs and responsibilities from buyer to seller. Price comparisons between suppliers must account for Incoterm used - a 100 EXW price might equal 130 DDP from a different supplier.

1,000 EXW + 300 freight + 50 insurance + 150 duty = 1,500 DDP landed cost. Each Incoterm captures a different slice: EXW = goods only (1,000). the financial regulator = goods + local transport to carrier (~1,060). CIF = goods + freight + insurance (1,350). DDP = all-in (1,500). Supplier price comparisons meaningful only within same Incoterm.

Common Incoterm choices: FOB (Free On Board) - most used for ocean freight, ownership transfers at origin port. CIF - commonly used for insurance + freight in one price. DDP - popular for smaller buyers wanting fixed landed cost with no customs hassle. Pick based on who's better at managing each leg of logistics.

Quick example

With goods value of 1,000 and exw cost of 1,000 (plus freight cost of 300 and insurance cost of 50), the result is 1,500.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Goods Value, EXW Cost, Freight Cost, Insurance Cost, and Customs Duty. Frequency and unit price pull the total in different directions. The biggest surprise for most people is how small recurring amounts compound into large annual figures — that's where this calculation earns its keep.

What's happening under the hood

EXW = goods only. the financial regulator = EXW + 20% freight (local transport). CFR = EXW + freight. CIF = EXW + freight + insurance. DDP = CIF + customs duty. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

What to do with a low result

A disappointing result is information, not a judgement. Pick the single input that dragged the figure down most and focus the next quarter on that one factor. Breadth-first improvement rarely works; depth-first on the worst input usually does.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.