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ShipMargin

DDP vs DAP calculator

Compare Delivered Duty Paid against Delivered at Place: see what each Incoterm costs you, what your customer gets billed, and which produces a better checkout price.

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The shipment
$
$
%
$
Duty and tax at stake
$177.76

This is the amount the Incoterm decides who pays.

DDPYou: $737.76 · Buyer: $0.00

Nothing to pay on delivery. The price at checkout is the final price.

DAPYou: $560.00 · Buyer: $177.76

Courier invoices your customer $177.76 before releasing the parcel.

CIFYou: $560.00 · Buyer: $177.76

Buyer clears customs and pays duty, tax and destination charges.

FOBYou: $500.00 · Buyer: $237.76

Buyer arranges and pays for freight as well as duty and tax.

Thresholds for United Kingdom are set in GBP but you entered USD. Add an exchange rate and we will check whether this consignment clears them. Until then we have assumed it does not qualify for relief.
Import charges add 35.6% to the cost of these goods. On a thin-margin product that is usually the difference between a viable listing and a loss.

Who pays what, under Incoterms 2020

TermExport clearanceMain carriageInsuranceImport clearanceDuty & tax
EXWEx Worksbuyerbuyerbuyerbuyerbuyer
FOBFree on Boardsellerbuyerbuyerbuyerbuyer
CIFCost, Insurance and Freightsellersellersellerbuyerbuyer
DAPDelivered at Placesellerselleroptionalbuyerbuyer
DDPDelivered Duty Paidsellerselleroptionalsellerseller

EXW — The buyer collects from the seller's door and carries every cost and risk from there. Cheapest headline price, most work.

FOB — The seller delivers on board the vessel at the origin port. The standard term for container imports and the one most freight quotes assume.

CIF — The seller pays freight and insurance to the destination port. Import clearance, duty and destination charges remain yours — and destination charges on a CIF shipment are a classic hidden cost.

DAP — The seller delivers to your address but you owe duty and tax. This is why a customer receives a courier invoice after the parcel arrives.

DDP — The seller pays everything including duty and import tax. The only term that gives a consumer a genuinely final price at checkout, and the reason cross-border DDP pricing needs a landed-cost calculation.

Questions people ask about this

What is the difference between DDP and DAP?

Under DAP the seller delivers to the buyer's address but the buyer owes duty and import tax, usually collected by the courier before release. Under DDP the seller pays everything. DAP looks cheaper at checkout and generates the angry email three days later when the courier invoices your customer.

Should I sell DDP or DAP?

For consumer sales, DDP almost always, because an unexpected customs bill is one of the most reliable ways to generate a refund request and a bad review. For business-to-business, DAP is common and often preferred, since the buyer can reclaim import VAT and may have better broker rates than you.

Does DDP mean I need to register for VAT abroad?

Not necessarily, but it can. Selling DDP into the EU or UK at scale usually means dealing with IOSS, an OSS registration, or an importer of record arrangement. Get advice before you scale it — the compliance question is more expensive to fix later than to answer early.

Related calculators

Landed costGoods, freight, duty, tax and fees, resolved to a cost per unit.Customs dutyDuty, VAT and levies, stacked in the order customs actually applies them.De minimisDuty-free and tax-free import limits, market by market.Delivery dateAn arrival date that accounts for cut-offs, holidays and customs.

Where these numbers come from

This calculator uses arithmetic rather than published rates — every figure comes from the values you enter. See the methodology page for the formulas behind it.

Page last reviewed . Spotted something out of date? Tell us — corrections are published with the date they were made.