How to Calculate Mining Profitability: The Complete Formula Without Self-Deception

The basic calculation sequence

First estimate the number of coins produced over a period using the farm hashrate, network speed, block reward and block time. Then convert the coins into the selected currency using the current or scenario price.

Next subtract electricity, pool fee and a reserve for lower profitability. Only the resulting value is an approximate net result for the period.

• coin revenue
• minus electricity
• minus pool fee
• minus reserve and additional costs
• equals the estimated net result

ROI and payback are not guarantees

Payback is a mathematical estimate of how many days it would take for accumulated net results to equal the investment. If the coin price falls, difficulty rises or electricity becomes more expensive, the payback period gets longer.

For an honest decision, look beyond the base scenario and test a bad one: lower price, higher difficulty, downtime and repairs. That is why MiningView includes a profitability reserve.