1. What is a DDP Price Calculator?

Definition: This calculator estimates the Delivered Duty Paid (DDP) price by summing the EXW price, freight costs, insurance, and import duties.

Purpose: It helps importers, exporters, and logistics professionals determine the total landed cost of goods.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( DDP \) — Total delivered price including all costs
• \( EXW \) — Ex-works price (price at supplier's location)
• \( Freight \) — Transportation costs to destination
• \( Insurance \) — Shipping insurance costs
• \( Duties \) — Import duties and taxes

Explanation: The calculator sums all cost components to provide the total price the buyer will pay.

3. Importance of DDP Price Calculation

Details: Accurate DDP calculation ensures proper pricing, cost control, and compliance with international trade terms.

4. Using the Calculator

Tips: Enter all cost components in USD. All values must be ≥ 0. For percentage-based costs, calculate the dollar amount first.

5. Frequently Asked Questions (FAQ)

Q1: What does DDP mean in shipping?
A: Delivered Duty Paid means the seller covers all costs and risks until goods are delivered to the buyer's location.

Q2: How is EXW price different from FOB?
A: EXW is price at supplier's location; FOB includes costs to get goods loaded on vessel.

Q3: Should I include local delivery in freight?
A: Yes, include all transportation costs from supplier to final destination.

Q4: How do I estimate duties?
A: Check the HS code tariff rate for your product in the destination country.

Q5: Does DDP include VAT/GST?
A: Typically yes, unless specified otherwise in the contract.