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How are gas fees calculated?

A quick breakdown of how blockchain networks determine transaction fees.

Gas fees are calculated using a simple formula:

Gas Fee = Gas Units Used × (Base Fee + Priority Fee)

  • Gas Units Used: How much computation your transaction needs.

  • Base Fee: A network-set amount that fluctuates with demand.

  • Priority Fee: A small tip to validators to speed up your transaction.

For example:
If your transaction uses 100,000 gas units, with a base fee of 30 gwei and a priority fee of 2 gwei, your total fee would be 0.0032 ETH.