How to Use the Bitcoin Mining Calculator
The bitcoin mining calculator is a critical tool for any cryptocurrency miner, whether you are running a single ASIC at home or managing a large-scale data center. This tool allows you to input your specific hardware specifications and local electricity costs to determine if mining is financially viable under current market conditions.
To get the most accurate results, you should gather the following information before using the tool:
- Hashrate (TH/s)
- The speed at which your hardware can solve Bitcoin's cryptographic puzzles. Usually measured in Terahashes per second (TH/s) for modern ASIC miners like the Antminer S19 or S21.
- Power Consumption (Watts)
- The amount of electricity your mining rig draws from the wall. This is a primary expense in Bitcoin mining.
- Network Difficulty
- A measure of how difficult it is to find a new block. This value adjusts roughly every two weeks (2,016 blocks).
- Block Reward
- The amount of new BTC awarded to the miner who solves a block. After the 2024 halving, this value is 3.125 BTC.
The Bitcoin Mining Formula Explained
The bitcoin mining calculator uses a specific mathematical relationship between the network difficulty and your hashrate to estimate production. The fundamental formula for daily BTC revenue is:
Daily BTC = (Hashrate × Block Reward × 86,400) / (Difficulty × 232)
- 86,400: The number of seconds in one day.
- 232: A constant representing the statistical probability of finding a valid hash relative to the difficulty level.
- Difficulty: The current global Bitcoin network difficulty level.
Calculation Example
Example: Suppose you purchase an ASIC miner with 140 TH/s hashrate, consuming 3,000 Watts. Your local electricity cost is $0.10/kWh, the current BTC price is $60,000, and Difficulty is 80 Trillion.
Step-by-step solution:
- Gross Daily BTC: (140,000,000,000,000 × 3.125 × 86,400) / (80,000,000,000,000 × 4,294,967,296) ≈ 0.000110 BTC.
- Daily Revenue: 0.000110 BTC × $60,000 = $6.60.
- Daily Power Cost: (3000W / 1000) × 24 hours × $0.10 = $7.20.
- Net Daily Profit: $6.60 – $7.20 = -$0.60.
- Result: In this scenario, the miner is losing $0.60 per day due to high electricity costs relative to revenue.
Common Questions
Why does my profit keep changing?
Bitcoin mining profitability is highly volatile because it depends on three moving targets: the market price of Bitcoin, the network difficulty (which increases as more miners join), and the halving events that cut the block reward in half every four years.
What is a good electricity rate for mining?
Generally, for Bitcoin mining to be sustainably profitable, you need an electricity rate below $0.06 or $0.07 per kWh. Most industrial-scale miners aim for $0.03 to $0.05 per kWh.
Should I include pool fees in the calculator?
Yes. Most mining pools charge between 1% and 3% to manage the coordination of hashrate and payouts. Failing to include this will result in an overestimation of your earnings.