Routing fee calculation is often confusing for Lightning Network operators, so here is a quick overview to explain how it works and how it's calculated.

As a Lightning Network node operator, you are only paid forwarding fees when a payment is forwarded successfully, as opposed to a failed forward request. The fee is calculated based on the outgoing channel. The incoming channel's fees you set on your node are irrelevant for fee calculation. Therefore, if you expect to forward many payments to a specific node, set the fees on the channel to that node according to your needs.

• Base Fee
• Fee Rate
• Nomenclature
• Examples of Fee Calculation
• Handling Very Low Fees

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