Simple and Accurate Bitcoin Mining Calculator

Last updated: 10.17.18

What is a Bitcoin mining calculator?

A Bitcoin mining calculator allows you to determine how much can you profit from a certain Bitcoin miner. It takes into account all relevant costs, such as hardware, electricity, and fees. See detailed instructions on how to use it below.

Difficulty Factor
Hash Rate
BTC/USD Exchange Rate
BTC/Block Reward
Pool Fees %
Hardware Cost (USD)
Power (Watts)
Power Cost (USD/kWh)

 


Instructions on how to use the Bitcoin Mining Calculator:

  1. Enter the hash rate of your Bitcoin mining hardware.
  2. Enter additional info, such as pool fees, electricity costs, etc. While not all fields are mandatory, the more information you enter, the more accurate the result will be.
  3. Results will be displayed automatically in USD (to see the detailed calculation, click “Show Details”).

Keep the following in mind:

  • Some values (e.g., the exchange rate) are updated automatically with the latest network stats. However, you can adjust any value manually to simulate possible scenarios.Revenue is shown in USD based on the current exchange rate. The exchange rate can (and probably will) change from time to time.
  • Revenue is based on current difficulty to mine Bitcoins. Mining difficulty can (and probably will) change. From past experience, it usually goes up as time goes by (on average 0.4% per day).
  • Revenue is NOT profit. You still have to take into account your mining expenses (e.g., the cost of your mining hardware, the electricity it takes to run it and cool it down if necessary).

For a detailed explanation about each section keep on reading. Here’s what will we cover in this post:

  1. How to Calculate Bitcoin Mining Profitability
  2. Conclusion: A Bitcoin Mining Calculator Predicts the Future

1. How to Calculate Bitcoin Mining Profitability

Bitcoin mining secures the Bitcoin network. Without miners, there would be no one to update Bitcoin’s ledger, which is known as the blockchain. The more miners you have, the more decentralized and secure the network is. Due to miners’ crucial role in the network, an incentive system was designed so that miners will be compensated for providing their services.

Each block mined by miners contains a block reward—a fixed amount of bitcoins that are paid out to the miner that mined the block.

While mining today is very competitive, it’s possible to run a successful and profitable mining operation. This post will outline the many factors that will determine whether or not your mining operation will be profitable.


1.1 Hardware Costs

DragonMint T1
Manufacturer:
Halong Mining
Power consumption:
1480W
Hash rate:
16 TH/s
Efficiency:
0.0925 j/GH
Chip process:
10 nm
Noise level:
75 db
Overall rating:
5 Star Rating
Antminer S9
Manufacturer:
Bitmain
Power consumption:
1350W
Hash rate:
14.5 TH/s
Efficiency:
0.093 j/GH
Chip process:
16 nm
Noise level:
76 db
Overall rating:
4.5 Star Rating
AvalonMiner 841
Manufacturer:
Canaan
Power consumption:
1290W
Hash rate:
13.6 TH/s
Efficiency:
0.099 j/GH
Chip process:
16 nm
Noise level:
65 db
Overall rating:
4 Star Rating

The up-front cost of mining hardware is usually the largest expense for any new mining operation. Just like good computers cost more money, good mining hardware is expensive. There are three main mining hardware manufacturers today that supply miners on the market.

When purchasing mining hardware, you will want to look at a miner’s hash rate measured in Terra Hash (Th/s). A higher hash rate means a more powerful miner.

Miners also generate heat and need to be supplied with electricity. Unless you already have the needed parts, you will likely need to purchase cooling fans and power supplies. Make sure to take these into account and add them into the “hardware cost” section of the calculator.


1.2 Hardware Efficiency

Hash power alone is not enough to determine the quality of a miner. Similar to the way cars are rated by their MPG (miles per gallon), miners are valued by how many bitcoins they yield according to the electricity they consume.

The reason for that is that miners use massive amounts of electricity, and electricity costs money. In short, you want a miner that has a high hash rate and uses the provided electricity efficiently.

W/Gh (watts per gigahash) is the metric used to display a miner’s efficiency. The lower this number, the more efficient the miner.


1.3 Electricity Costs

Electricity costs can make or break a mining operation. A huge monthly electric bill means significant costs on top of the up-front cost of the hardware.

China’s cheap electricity is one of the reasons why nearly 60% of Bitcoin’s network hashing power is located there. In the United States, for example, most mining hardware is run in Washington State, where power costs are relatively cheap thanks to hydroelectricity. Venezuela’s crisis and the cheap electricity resulting from it have made Bitcoin mining extremely profitable there.

Electric costs for cooling are yet another factor to consider, as miners generate significant heat during the mining process. Insufficient cooling may impair your mining operation or even lead to irreparable damage in the hardware. However, there are ways to harness this by-product to your advantage.

Creative miners in cold areas can use the heat generated by miners to heat their houses in the winter. If the heat generated by miners will partly replace your normal heating costs, it can be another way to save money and improve your chances of profitability.

Miners in cold areas also have an advantage because they may not need to use extra fans to cool the hardware.


1.4 Bitcoin Mining Difficulty and Network Hash Power

The Bitcoin mining difficulty makes sure that Bitcoin blocks are mined, on average, every 10 minutes. A higher difficulty is indicative of more hash power joining the network (i.e., more or stronger miners are at work).

As can be expected, more hash power on the network means that the current miners control a lower percentage of the Bitcoin network’s hash power.

The network’s hash rate and difficulty are external factors that should be accounted for. However, it’s impossible to predict what the difficulty will be months in advance. Still, stay alert to advances in mining technology and efficiency to get a better idea of how the network’s hash rate and difficulty may look down the line.


1.5 Bitcoin Price

Bitcoin’s price is extremely volatile and thus can’t be predicted. You may calculate your profitability today with a Bitcoin price of X and experience a price drop to Y a day afterward that will significantly affect your profitability. In short, be prepared for price movements and understand that Bitcoin’s price is a factor that you cannot control.


1.6 Block Reward

Unlike Bitcoin’s price, the Bitcoin block reward is predictable: Every four years, the amount of bitcoins awarded for each block, is cut in half. In 2012, the reward was cut from 50 bitcoins per block to 25 and is now 12.5 bitcoins per block. In 2020, this reward will fall to just 6.25 bitcoins per block, and so forth.

Note that while each halving cuts miners’ reward in half, the increase in demand that results may lead to Bitcoin’s price rising, keeping mining profitable.


2. Conclusion: A Bitcoin Mining Calculator Predicts the Future

To conclude, this Bitcoin mining calculator can give you a much better idea about your potential to run a profitable mining operation. Remember, however, that some factors such as Bitcoin’s price and mining difficulty, change every day and can have dramatic effects on profitability.

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