In this track: Your first steps
beginner · 4 MIN READ

What is a network fee?

A charge for the network resources used to process an action.

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Paying for a delivery covers work even when the parcel’s contents have a different value. A transaction’s fee is separate from the amount it transfers.

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Calculate and split a manual execution feeStep 1 / 4
Calculate and split a manual execution feeGas used21,000A resource quantityGas used and gas limit are different quantitiesBase10 GweiEffective tip2 GweiTotal rate12 Gwei / gasAssumed total cap: 20 Gwei; no live prices are fetchedWork × rate21,000 × 12252,000 GweiExecution fee0.000252 ETHExact unit conversionThis calculation excludes blob and layer 2 data feesBase component0.00021 ETHBurned by protocolPriority component0.000042 ETHTo fee recipientComponents sum to the supplied 0.000252 ETH example

This example supplies twenty-one thousand gas used. It is a simple teaching input, not a live estimate of a contract call.

Animated local teaching model. No wallet, RPC or live blockchain data. Some labels and hashes are abbreviated for readability.

Value and fee differ

Sending 0.01 ETH and paying 0.000252 ETH in execution fees are two separate amounts. The value goes to the recipient under the transaction’s rules. The fee pays for network execution, with different components following protocol rules.

Work has a price

Ethereum measures execution work in gas. Multiply gas used by effective price per gas to calculate the execution fee. A complex contract action can require more gas than a simple transfer.

Why the fee can change

The base fee changes according to network conditions and protocol rules. Users specify fee caps and priority-fee limits. A number shown in a wallet is an estimate under particular assumptions, not a promise that every possible action costs that amount.

Try simple maths

Open the manual gas calculator and change one input at a time. It uses your values without fetching prices. For layer 2 networks, additional components can make a total fee different from this execution-only example.

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Is a transaction’s transferred amount the same thing as its fee?

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Original explanations by EtherTools. Examples are educational and source-linked; this site is independent of the Ethereum Foundation. Our approach.