Carbon Credit Calculator Formula

Understand the math behind the carbon credit calculator. Each variable explained with a worked example.

Use the Carbon Credit Calculator

Formulas Used

Net Revenue

net_revenue = gross_value - broker_fee - verification_cost

Gross Value

gross_out = gross_value

Total Costs

total_costs = broker_fee + verification_cost

Net per Credit

net_per_credit = (gross_value - broker_fee - verification_cost) / credits_tons

Variables

VariableDescriptionDefault
credits_tonsCarbon Credits Generated(metric tons CO2e)500
price_per_creditPrice per Credit(USD)30
verification_costVerification Cost(USD)5000
broker_pctBroker Commission(%)10
gross_valueDerived value= credits_tons * price_per_creditcalculated
broker_feeDerived value= gross_value * broker_pct / 100calculated

How It Works

How to Calculate Carbon Credit Value

Carbon credits represent verified emission reductions that can be sold on voluntary or compliance markets.

Formula

Gross Value = Credits (tons) * Price per Credit

Net Revenue = Gross Value - Broker Fee - Verification Cost

Market Prices

  • Voluntary market: $5-50/ton
  • EU ETS allowances: $55-80/ton
  • RGGI (US): $12-15/ton

    • Worked Example

    A project generates 500 credits at $30 each, with $5,000 verification and 10% broker fee.

    credits_tons = 500price_per_credit = 30verification_cost = 5000broker_pct = 10
    1. 01Gross value: 500 * $30 = $15,000
    2. 02Broker fee: $15,000 * 10% = $1,500
    3. 03Total costs: $1,500 + $5,000 = $6,500
    4. 04Net revenue: $15,000 - $6,500 = $8,500
    5. 05Net per credit: $8,500 / 500 = $17.00/ton

    Ready to run the numbers?

    Open Carbon Credit Calculator