Miner profitability should be calculated from current operating data rather than a fixed revenue promise. The goal is to estimate net profit and understand which assumptions can change the result.
Inputs you need
- Miner hash rate and algorithm
- Power consumption in watts
- Electricity price per kWh
- Current network difficulty and block reward
- Coin price and pool fee
- Cooling, internet, maintenance, and downtime costs
Electricity cost
Convert the miner’s power draw to kilowatt-hours: watts divided by 1000, multiplied by 24 hours and the number of operating days. Multiply that result by the electricity rate. Add cooling and other infrastructure costs for a more realistic figure.
Net profit formula
Net profit = mining revenue − electricity − pool fees − cooling − maintenance − other operating costs. Calculate daily, monthly, and annual values, then compare them with the purchase price and expected replacement cycle.
Use scenarios
Run at least three scenarios. A conservative case should use a lower coin price, higher difficulty, lower uptime, and a realistic repair reserve. The expected case should use current data. An optimistic case is useful for understanding upside, but it should not be the basis for a purchase decision.
Common mistakes
- Using nominal rather than measured power consumption
- Ignoring pool fees and rejected shares
- Excluding cooling, repairs, and downtime
- Assuming network difficulty and coin price are fixed
- Confusing gross revenue with net profit
Conclusion
A reliable estimate is a living calculation. Update it with current network data and compare it with actual farm performance. MinerTools provides tools for profitability estimates and device monitoring.
