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Calculating profit

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There is often a discussion about profitability and calculating expected income. But many times calculations turn out to be imprecise. Let's introduce few ways to calculate and analyze mining profit.

 

1. Manual calculations

  • You can try and calculate expected profit by yourself. For this you need to know your hashrate, global hashrate, blocks per day (24h*60min(=1440) / block time in minutes) and average block reward (newly mined coins + variable tx fees).
  • The formula for daily income is (YourHashrate*BlocksPerDay*AvgBlockReward) / GlobalHashrate

Example:

Coin: XMR
My hashrate: 1kH/s avg
Global (network) hashrate: 600MH/s avg
Block time: 2min -> 720 blocks/day
Block reward: ~3.85 (as of 9/2018, together with tx fees)

(1,000 * 720 * 3.85) / 600,000,000 = 0.00462 XMR/day

 

2. Calculator sites

You can use one of many sites with profit calculations. We have a simple profit calculator on every pool's "Dashboard".

As an external site I can recommend these sites:

You enter your hashrate, source of mining (GPU/CPU) - based on this the site calculates your hashrate for other CN variants (it is a GUESS! Make your own tests, depends on exact hardware)

As of today, putting 1kH/s speed calculated me 0.0046 XMR/day earnings 
(0.5% error and my averages were more or less eyeballed from graphs and block history).

 

3. Analyzing calculations, error margins

But wait! I did this, and I got much less!

Well, there are many things that go into this.

  • Mining time - If you mine for a short period of time, there are more things that can influence your earnings. Effort (luck) of those blocks might not be 100%. Longer you mine, more precise predictions will be.
  • Coin price changes in fiat - Coin price affects number of mined coins a lot. It dictates global hashrate (people jumping to more profitable coins), and the way number of mined coins. 
  • Network hashrate fluctuations - Global (network) hashrate changes all the time. This affects your earnings probably the most. Look at the difficulty/hashrate graph (essentially the same thing, but different units). If it went up, you will earn less and vice versa
  • Luck - Yes, this is still mining. There will always be the luck factor. But as I said, if you mine the same thing for a long time, luck factor averages out.

4. Summary

Profit calculators are great, but don't expect they will be 100% accurate. Be conservative, expect maybe 80% of that. Observe trends, changes, and try to have count with that. Also keep in mind your electricity costs :) 

  • Thanks 1

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Crypto is da way

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