🔒 Keep Your Crypto Safe with Ledger

Touchscreen wallet • Works with 15,000+ coins • Never lose your crypto

Mining Profitability Calculator

Calculate mining earnings by entering hashrate or selecting specific mining devices for various cryptocurrencies.

Calculator
Enter your investment details to calculate potential returns
Form Progress0%

Your mining hardware's hashrate (units vary by algorithm)

Cryptocurrency mining algorithm

Total power usage in watts

Cost per kilowatt-hour

Cryptocurrency Mining Basics

Understand key concepts to make informed investment decisions

What is Cryptocurrency Mining?

Mining is the process of using computer hardware to solve complex mathematical problems that verify cryptocurrency transactions. In return, miners receive newly created coins and transaction fees as rewards.

Hashrate

Hashrate measures your mining hardware's computational power. Higher hashrate = more chances to solve blocks = more potential earnings. Measured in TH/s (terahashes) for Bitcoin or MH/s (megahashes) for other coins.

Mining Algorithms

Different cryptocurrencies use different algorithms: SHA-256 (Bitcoin), RandomX (Monero), KAWPOW (Ravencoin), Scrypt (Litecoin), etc. Each requires specific hardware optimized for that algorithm.

Mining Hardware

ASICs (specialized chips) for Bitcoin, GPUs (graphics cards) for many altcoins. ASICs are powerful but coin-specific. GPUs are versatile but less powerful for any single coin.

Electricity Costs

Mining consumes significant power. Your electricity rate ($/kWh) is crucial to profitability. Lower rates = higher profits. Many miners seek locations with cheap, renewable energy.

Mining Pools

Solo mining rarely pays off for individuals. Pools combine miners' hashrates to find blocks more consistently, sharing rewards proportionally. More stable income vs. solo mining's lottery-like payouts.

How to Use This Calculator

Understand key concepts to make informed investment decisions

1. Enter Your Hashrate

Input your mining hardware's hashrate in TH/s (SHA-256, kHeavyHash), MH/s (most algorithms), or H/s (RandomX). Check your miner's specifications or pool dashboard for this number.

2. Select Algorithm

Choose the mining algorithm your hardware uses. This determines which cryptocurrency you're mining and affects revenue calculations based on current network conditions.

3. Power Consumption

Enter total power usage in watts (W). Include all equipment: miners, fans, cooling systems. Check your power supply or use a watt meter for accuracy.

4. Electricity Rate

Input your electricity cost per kilowatt-hour ($/kWh). Find this on your power bill. Industrial/commercial rates are often lower than residential rates.

Quick Example:

Antminer S19 Pro mining Bitcoin with $0.10/kWh electricity:

• Hashrate: 110 TH/s
• Algorithm: SHA-256
• Power: 3250 W
• Cost: $0.10/kWh

How the Calculations Work

Understand key concepts to make informed investment decisions

Revenue Formula

1. Network Share

Share = Your Hashrate ÷ Network Hashrate

Your proportion of the total network mining power

2. Daily Revenue

Revenue = Share × Blocks/Day × Reward × Price

Your estimated daily mining earnings in USD

Cost & Profit Formulas

3. Daily Power Cost

Cost = (Watts ÷ 1000) × 24 × $/kWh

Example: (3250÷1000)×24×$0.10 = $7.80/day

4. Daily Profit

Profit = Daily Revenue - Power Cost

Net earnings after electricity expenses

Important Note:

These calculations use current network difficulty, block rewards, and coin prices. Actual results vary based on pool fees (typically 1-3%), network difficulty changes, price volatility, and hardware efficiency. Always factor in hardware costs and maintenance.

What Affects Mining Profitability?

Understand key concepts to make informed investment decisions

Operational Factors

Electricity Cost

The #1 factor. $0.05/kWh vs $0.15/kWh can be difference between profit and loss. Seek commercial/industrial rates or renewable energy sources.

Hardware Efficiency

Newer miners produce more hashrate per watt (J/TH metric). An efficient miner can be profitable where an old one loses money at the same electricity rate.

Cooling & Uptime

Proper cooling prevents throttling and extends hardware life. 99% uptime vs 80% significantly impacts earnings. Factor in maintenance and downtime costs.

Market Factors

Coin Price Volatility

Mining profitability directly tracks coin prices. A 50% price drop = 50% revenue drop. Many miners hold coins hoping prices rise, but this adds risk.

Network Difficulty

As more miners join, difficulty increases, reducing everyone's rewards. Bitcoin adjusts every ~2 weeks. Rising difficulty = lower profits at same hashrate.

Block Rewards & Halvings

Bitcoin halves rewards every ~4 years (6.25 → 3.125 BTC). Ethereum Classic reduced rewards multiple times. Plan for these predictable revenue cuts.

💡 Profitability Tips:

  • • Negotiate better electricity rates or consider relocating to cheaper regions
  • • Use immersion cooling or optimize airflow to reduce power and extend hardware life
  • • Join reputable mining pools with low fees (1-2%) and consistent payouts
  • • Monitor profitability daily and be ready to pause during extended unprofitable periods
  • • Factor in pool fees, hardware depreciation, and eventual replacement costs

Mining Strategies & Best Practices

Understand key concepts to make informed investment decisions

Pool vs Solo Mining

Pools provide steady, predictable income by sharing rewards. Solo mining is lottery-like - huge rewards but extremely rare. Pools are recommended unless you have massive hashrate.

Multi-Coin Mining

GPUs can switch between coins. Auto-switching pools mine the most profitable coin automatically. Can boost profits 10-30% vs. mining one coin consistently.

HODL vs Immediate Sale

Sell immediately to cover costs with no price risk, or hold coins hoping for appreciation. Many miners do hybrid: sell 50-70% for expenses, hold rest for potential gains.

Hardware ROI Planning

Calculate break-even before buying. At $15/day profit, a $5,400 miner needs 360 days to ROI. Difficulty increases and price drops extend this. Target 12-18 month payback maximum.

Seasonal Adjustments

Mining generates massive heat. In winter, it can offset heating costs. In summer, cooling costs surge. Some miners pause during peak summer or mine only at night.

Tax & Accounting

Mining income is typically taxable when received. Track daily values, deduct electricity and equipment depreciation. Use crypto tax software or consult a tax professional.

Common Mining Mistakes to Avoid

Understand key concepts to make informed investment decisions

⚠️ Ignoring Electricity Costs

Mining "for free" at home/work is stealing and illegal. Even small electricity cost differences matter. $0.15/kWh often means losses where $0.08/kWh is profitable.

⚠️ Overestimating ROI

Don't assume today's profitability continues forever. Difficulty rises, prices drop, hardware fails. Build in 30-50% margins - if barely profitable today, you'll likely lose money in 3-6 months.

⚠️ Poor Ventilation

Heat kills hardware and reduces efficiency. Miners need serious airflow - garage/spare room setups often fail. Hot hardware = lower hashrate, higher power usage, shorter lifespan.

⚠️ Buying Outdated Hardware

Cheap used miners are often obsolete. An S9 for $200 seems good until electricity costs more than it earns. Focus on efficiency (J/TH) not just upfront price.

⚠️ Inadequate Power Supply

Home circuits can't handle multiple miners. Overloading circuits causes fires. Consult electrician, install proper circuits/breakers. Budget $500-2000 for electrical upgrades.

⚠️ Forgetting Pool Fees

Most pools charge 1-3% fees. A 2% fee on $50/day is $1/day or $365/year. Compare pool fees, payout thresholds, and reliability before choosing.

⚠️ Noise Underestimation

ASICs are LOUD (70-80 dB, like a vacuum). Can't run in living spaces. Need isolated room/garage or sound dampening. Neighbors may complain.

⚠️ No Exit Strategy

Know when to quit. Set a "shutdown price" - if profitability drops below $X/day for Y weeks, pause operations. Mining at a loss hoping for recovery usually just increases losses.

Getting Started with Mining

Understand key concepts to make informed investment decisions

Before You Start:

Mining requires significant upfront investment and ongoing costs. Calculate carefully before purchasing hardware. Consider starting small or cloud mining to test the waters before committing thousands to equipment.

1. Calculate Profitability First

  • • Research current hardware prices and specs
  • • Know your exact electricity rate
  • • Factor in 30-50% profit margins for safety
  • • Plan for difficulty increases and price drops

2. Choose Your Hardware

ASICs for Bitcoin/Litecoin (expensive, powerful, coin-specific). GPUs for altcoins (versatile, lower hashrate). Prioritize efficiency (J/TH or J/MH) over raw hashrate.

3. Prepare Infrastructure

Dedicated space with ventilation, adequate power circuits, stable internet. Budget for electrician, cooling, and monitoring equipment. Consider noise impact.

4. Select Mining Pool

  • • Compare fees (aim for 1-2% or less)
  • • Check payout thresholds and frequency
  • • Research pool reputation and uptime
  • • Consider geographic server locations

5. Set Up Wallet & Monitoring

Secure wallet for receiving payouts. Monitoring tools for hashrate, temps, profits. Set alerts for offline miners or temperature issues. Track expenses for taxes.

6. Regular Maintenance

Clean dust monthly, monitor temperatures, update firmware, track profitability. Be ready to shut down if unprofitable. Budget for repairs and eventual hardware replacement.