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Calculating Bitcoin transaction fees is an overwhelming process, but we have a solution for you! Read and discover how to calculate Bitcoin transactions fast!

A lot of people think of the calculating transaction fees process like rolling a cigarette or riding a bike – you know how to do it, but the complex process annoys you. The User Experience improvements and positive changes over the last couple of years have made Bitcoin and other cryptocurrencies easier than ever to send and receive, however, calculating the fees is still a process that everyone prefers to avoid.

In this article, we will discuss how to calculate Bitcoin transaction fees and how to enjoy while doing it.

Bitcoin Estimate Fee

In life, nothing comes for free. If you want to send or trade Bitcoins, you have to pay for it. You have to pay for the miners whose machines secure the whole network and ensure that hundreds and hundreds of transactions are successfully completed every day.

Before, when one Bitcoin cost $10 or $100, no one really cared about the fees as they were so small that were unimportant. This is one of the reasons why websites like Satoshi Dice were able to flourish, allowing Bitcoiners to send scores of their transactions over the Blockchain with insufficient regard for fees.

Bitcoin Transactions

Have you ever asked yourself – where do transaction fees go really?

Calculate the bitcoin transaction fee

This is what happens – miners receive the fees attached to the transactions on the block. The reward per block is approximately 12.5 BTC, however, the miner may receive a number closer to 13 BTC (by the actual time fees have been added on). Even though there is technically no actual agreement to attach fees to a financial transaction, there is no actual agreement for the miner to include the transactions in the process. In other words, it makes a total sense to include a certain fee to encourage the miner, to add the transaction to the process.

Here is one important information to keep in mind – miners prioritize the transactions with the highest fee per byte. This is why senders pay a surcharge to push their financial transactions to the front of the list. If you pay the highest possible fee, the transaction should be confirmed within the next block which is usually between 5-15 minutes waiting. If you pay lower fees, your transactions will be confirmed within the next 3 or 4 blocks which usually takes from 10 to 30 minutes.

As the popularity and value of Bitcoins have risen, so have the fees. Now that the fees are higher than before, you need to find a proper way to calculate the fees and see if they meet your budget.

If you search online, for example, “how to calculate Bitcoin fees” you will notice that there are lots of Bitcoin calculators, tutorials, and explanations, however, not all of them are easy to use, instead, they are unclear and confusing.

Bitcoin fees

Is it possible to calculate the fee without a calculator?

Yes, it is possible. We’ve talked to some experts and according to them, all you have to do is work out the size of the transaction in bytes. Once you do that, you need to multiply it by the median byte size, use the answer in satoshis, divide the number by 100 million (if you are using a scientific calculator is 1e8) get the answer in Bitcoin and finally convert it to USD.

We know that it sounds a little bit complicated, and that is why we want to offer you easier solutions.

A lot of web-based and hardware Bitcoin wallets come with fee calculators will are really helpful. However, not all wallets are equipped the same, and most of the websites, from web stores to cryptocurrency exchanges leave to the user to calculate the fees. In this case, the following tools will do a pretty good job:

  • Estimatefee.com – a website that calculates the costs (in USD and in satoshis) for a Bitcoin transaction
  • Bitcoinfees.info – Here you will find slow, medium, and fast fees in USD
  • Bitcoinfees.earn.com – Another great tool, but in order to use it, you need to be fluent in satoshis.

Hope this article was helpful!