{
  "slug": "carbon-offset-cost",
  "title": "Carbon Offset Cost Calculator",
  "heading": "Carbon Offset Purchase Cost Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/carbon-offset-cost",
  "summary": "What it costs to offset your emissions at current market prices.",
  "description": "Once you know your emissions total, offsetting is a straightforward multiplication — but offset quality and price vary enormously, from $3/ton for cheap forestry credits to $500+/ton for verified direct air capture. This calculator lets you model the cost of offsetting a given emissions volume across different project types and blend them into a portfolio, which is how most corporate buyers actually approach it rather than buying one credit type. It also shows the cost as a percentage of a hypothetical revenue base so finance teams can gut-check whether an offset commitment is material. Buying offsets doesn't replace reduction — under SBTi and most credible net-zero frameworks, offsets only count for residual emissions after you've cut what you can, so use this for the 'last mile' portion of your footprint, not the whole number.",
  "formula": "Cost = emissions (tCO2e) × price per ton, blended across the portfolio mix you select.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=carbon-offset-cost",
  "inputs": [
    {
      "id": "tons",
      "label": "Emissions to offset",
      "kind": "number",
      "hint": null,
      "default": 5000,
      "unit": "tCO2e",
      "min": 0,
      "max": null
    },
    {
      "id": "forestryPct",
      "label": "Share as forestry/nature credits",
      "kind": "number",
      "hint": null,
      "default": 50,
      "unit": "%",
      "min": 0,
      "max": 100
    },
    {
      "id": "forestryPrice",
      "label": "Forestry credit price",
      "kind": "number",
      "hint": null,
      "default": 12,
      "unit": "$/ton",
      "min": 0,
      "max": null
    },
    {
      "id": "techPrice",
      "label": "Tech/DAC credit price",
      "kind": "number",
      "hint": null,
      "default": 150,
      "unit": "$/ton",
      "min": 0,
      "max": null
    },
    {
      "id": "revenue",
      "label": "Annual revenue (optional, for context)",
      "kind": "number",
      "hint": null,
      "default": 20000000,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "cost",
      "label": "Total offset cost",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "avgPrice",
      "label": "Blended price per ton",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "forestryCost",
      "label": "Forestry credit spend",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "techCost",
      "label": "Tech/DAC credit spend",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "pctRevenue",
      "label": "Share of annual revenue",
      "format": "percent",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Emissions to offset: 5000 tCO2e",
      "Share as forestry/nature credits: 50 %",
      "Forestry credit price: 12 $/ton",
      "Tech/DAC credit price: 150 $/ton",
      "Annual revenue (optional, for context): 20000000 $"
    ],
    "outputs": [
      "Total offset cost: $405,000",
      "Blended price per ton: $81.00",
      "Forestry credit spend: $30,000",
      "Tech/DAC credit spend: $375,000",
      "Share of annual revenue: 2.025%"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter emissions to offset (tCO2e).",
      "Enter share as forestry/nature credits (%).",
      "Enter forestry credit price ($/ton).",
      "Enter tech/dac credit price ($/ton).",
      "Enter annual revenue (optional, for context) ($).",
      "Read your total offset cost on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "tons": 3000,
        "forestryPct": 30,
        "forestryPrice": 7,
        "techPrice": 90,
        "revenue": 12000000
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "tons": 5000,
        "forestryPct": 50,
        "forestryPrice": 12,
        "techPrice": 150,
        "revenue": 20000000
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "tons": 8000,
        "forestryPct": 80,
        "forestryPrice": 19,
        "techPrice": 240,
        "revenue": 32000000
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Why do offset prices vary so much?",
      "a": "Nature-based credits (reforestation, avoided deforestation) are cheap because the underlying land management is inexpensive, but they carry permanence and additionality risk — trees burn down, projects would have happened anyway. Engineered removal like direct air capture is 10-40x more expensive but delivers durable, verifiable tons, which is why buyers increasingly blend both."
    },
    {
      "q": "Are offsets required for net-zero claims?",
      "a": "No credible framework lets you offset your way to net zero without first cutting emissions. SBTi's Net-Zero Standard requires 90%+ absolute reduction before offsets (as 'neutralization') can address the remainder, so treat this calculator as pricing the residual, not the whole inventory."
    },
    {
      "q": "What's a reasonable price to budget per ton in 2024?",
      "a": "Voluntary market averages run $5-20/ton for standard nature-based credits and $100-600/ton for high-durability removal credits like biochar or DAC. If your organization has made public net-zero commitments, expect scrutiny to push you toward the higher-quality, higher-priced end over time."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/scope1-2-emissions",
    "https://www.revenuelab.fyi/toolbox/rec-cost",
    "https://www.revenuelab.fyi/toolbox/carbon-price-exposure"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Carbon Offset Cost Calculator (https://www.revenuelab.fyi/toolbox/carbon-offset-cost)"
}