Ethereum Mining Calculator

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About Ethereum Mining Calculator (Formula)

The Ethereum Mining Calculator estimates daily earnings from Ethereum mining based on several parameters using the following formula:

Daily Earnings=Block Reward×(1−Pool Fee)×Hash RateNetwork Difficulty×(1+Pool Luck)−Daily Electricity Cost\text{Daily Earnings} = \frac{\text{Block Reward} \times (1 – \text{Pool Fee}) \times \text{Hash Rate}}{\text{Network Difficulty} \times (1 + \text{Pool Luck})} – \text{Daily Electricity Cost}

Formula Breakdown

  • Daily Earnings: The amount of money earned from mining Ethereum in one day.
  • Block Reward: The reward given for mining a block of Ethereum, measured in ETH.
  • Pool Fee: The percentage fee charged by the mining pool, expressed as a decimal.
  • Hash Rate: The mining power of the miner, measured in mega hashes per second (MH/s).
  • Network Difficulty: A measure of how difficult it is to mine a block in the Ethereum network.
  • Pool Luck: The variation in the expected number of blocks found by the mining pool, expressed as a decimal.
  • Daily Electricity Cost: The cost of electricity consumed by the mining operation in one day.

Example Calculation

Suppose you have the following inputs:

  • Block Reward: 2 ETH
  • Pool Fee: 1% (0.01 as a decimal)
  • Hash Rate: 500 MH/s
  • Network Difficulty: 10,000,000
  • Pool Luck: 5% (0.05 as a decimal)
  • Daily Electricity Cost: $5

Using the formula:

  1. Adjust the block reward for the pool fee: Adjusted Block Reward=2×(1−0.01)=1.98\text{Adjusted Block Reward} = 2 \times (1 – 0.01) = 1.98
  2. Calculate the earnings before subtracting electricity costs: Earnings before Electricity Cost=1.98×50010,000,000×(1+0.05)=99010,500,000≈0.0000942857\text{Earnings before Electricity Cost} = \frac{1.98 \times 500}{10,000,000 \times (1 + 0.05)} = \frac{990}{10,500,000} \approx 0.0000942857
  3. Convert this to daily earnings in dollars: Daily Earnings=0.0000942857−5≈−4.9999\text{Daily Earnings} = 0.0000942857 – 5 \approx -4.9999

In this example, the daily earnings would be approximately -$5, indicating that the electricity cost exceeds the mining revenue.

Understanding the Ethereum Mining Calculator formula helps miners estimate profitability and make informed decisions about their mining operations.

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