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- Gas is the unit of measure for how much computational work is required to process transactions and smart contracts. Essentially a transaction fee, the term originates from Ethereum, in which context it refers to computation undertaken on the Ethereum Virtual Machine (EVM). Since Ethereum was founded, numerous EVM-compatible (and non-EVM-compatible!) networks have emerged and adopted similar models. The formula for determining the gas cost is: * Transaction cost: This represents the total gas used during the transaction. Both the execution cost and the transaction's inherent cost are included. The transaction cost in your case is 43,322 gas. Gas fees are calculated by multiplying the gas price by the gas limit. So, if the gas limit is 20,000 and the price per unit is 200 gwei, the fee would be 20,000 * 200 = 4,000,000 gwei or 0.004 ETH.