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What Is Gas on Ethereum? Gas Limit, Gwei and Fees Explained

Gas is the unit that measures how much computational effort an operation needs on Ethereum; you pay for the gas a transaction uses at a price per unit, quoted in gwei.

Key takeaways

What gas is

Ethereum runs programs, called smart contracts, on thousands of computers. To stop anyone from overloading the network and to pay those who run it, every operation is assigned a gas cost. ethereum.org defines gas as the unit that measures the computational effort required to execute specific operations. Sending ETH is cheap, while a complex contract interaction such as a swap uses much more gas.

Gas limit and gas used

When you send a transaction you set a gas limit, the maximum gas you are willing to let it consume. A standard ETH transfer requires 21,000 units. If a transaction needs more gas than its limit allows, it fails, and the gas spent up to that point is still consumed. Wallets estimate the limit for you, and unused gas above what was needed is returned.

Price per unit

The fee you pay is the gas used multiplied by the price per unit of gas. Prices are quoted in gwei, and each gwei is one-billionth of an ETH (0.000000001 ETH). Since the London upgrade, the price per unit has two parts: a base fee set by the protocol and an optional priority fee, or tip, paid to the validator.

What it means for you

When the network is busy, the base fee rises, and so does the cost of every transaction. Fees are paid in ETH even when you are moving another token, so you need a small ETH balance on any Ethereum address you want to use. Sending to a contract that does a lot of work, or failing a transaction, can still cost fees. Check the fee shown before you confirm, and wait for quieter periods if a transaction is not urgent.

Example

A simple transfer uses 21,000 gas. If the base fee is 20 gwei and you add a 2 gwei tip, you pay 21,000 × 22 gwei = 462,000 gwei, which is 0.000462 ETH.

Formula Fee = gas used × (base fee + priority fee)

Put it into practice

Keep a little ETH for fees

Ethereum fees are paid in ETH. Scrypt Wallet supports Ethereum, so hold a small ETH balance to cover gas when you send tokens or swap through Uniswap.

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Frequently asked questions

Why do I need ETH to send a token?

Gas is paid in ETH on Ethereum, whatever asset you are moving.

Do failed transactions cost gas?

Yes. The network still did the work up to the point of failure, so the gas used is charged.

What is a gwei?

A unit of ETH equal to one-billionth of an ETH, used to quote gas prices.

Related terms

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Written by the Scrypt Wallet team · Updated 2026-10-02. General education, not financial, tax or legal advice.