# EU ETS Cost

## How EU ETS Cost Is Calculated

When your system’s [default currency](../../../../../setup/system-settings/general#breakdown-of-the-available-settings) _**differs**_ from the voyage currency, the EU ETS Cost is _&#x63;_&#x6F;mputed in two phases but applied in one formula:

1. **Base cost in default currency**\
   Multiply the EUA price by the quantity (EU ETS emission).
2. **Conversion to voyage currency**\
   Apply the exchange rate between the default currency and the voyage currency.

In the figure below, the header shows USD (the voyage currency), while the price field’s end adornment shows EUR (the default currency). The EU ETS Cost is calculated according to the formula:

$$
\begin{array}{r@{\;}l@{\quad}r}
\text{EU ETS Cost} 
  & =\;\text{Price}\;\times\;\text{Quantity}\;\times\;\text{Exchange Rate} 
  & (1) \\          
  & =\;100\,\mathrm{EUR}\times13.567\times1.2                                    
  & (2) \\  
                  
  & =\;1628.00\,\mathrm{USD}                                                    
  & (3)
\end{array}
$$

<figure><img src="https://content.gitbook.com/content/yYbNukLL3zJksOADeOR7/blobs/4RRTRHRAIyIEDLWPdOU1/image.png" alt=""><figcaption><p>Figure 1: Profit &#x26; Loss Example</p></figcaption></figure>

The result, **1 628.00 USD,** is what appears under EU ETS Cost for that voyage.&#x20;

**NOTE:** In our example, the EUR to USD exchange rate on the date of calculation was **1.2**.

