How Does Our Ethereum Mining Calculator Work?
Our Ethereum mining calculator is the perfect tool for all cryptocurrency miners looking forward to mine for Ether (ETH). This mining calculator helps you predict the exact amount of profit you would make on a periodic basis - be it hourly, daily, weekly, monthly or yearly. The calculator considers various factors to derive these figures. Here are the factors that are considered:
The amount of electricity that is required by your mining device is considered. This amount is measured in Watts and is used to determine the cost of your mining operation. Ethereum mining is an activity which requires a significant amount of power and hence it is essential to consider this.
The cost per unit that you spend on electricity is then considered. This gives a proper estimate of the amount that you will be spending on the electricity bills during the mining operation which would then be deducted from your final profit.
The Hash Rate of your mining device is also critical. Hash Rate, which is measured in MegaHash per Second (MH/s) or even GigaHash per second (GH/s) is important. The higher this number is, the faster you will be able to mine for currencies. With ASIC devices now being introduced for Ethereum mining, hash rates are rising.
Our Ethereum mining calculator also keeps into consideration the cost that is spent as pool fees. Almost all miners tend to mine on cryptocurrency pools and pools charge a small percentage as pool fees while giving out the mining rewards. This is considered here to give you a more accurate profit figure.
Difficulty per block and Block rewards are another essential factors that are considered before the final profits are determined. Difficulty levels are on a constant rise - and block rewards continue to decline on a periodic basis. It is based on these calculations that a more accurate figure can be determined.
Finally, the most important number of them all: the price of ETH in USD. The higher this price is, the more profits you make.
Once you have entered all the appropriate information in the boxes, just click on ‘Calculate’ and you will then be able to see in detail all the relevant statistics along with the proper breakdown of how many currencies have you mined and how much are you paying in power and pool fees, as well as your final profit (or loss) in USD.
Why should one use Ethereum Mining Calculator before setting up mining farm or rig?
Cryptocurrency mining is not an easy decision to make. Miners need to calculate every aspect of the risk that they are taking before starting off with the activity. While cryptocurrency miners help verify the transactions on the blockchain - the biggest incentive to do so is the rewards that they get in the form of cryptocurrencies. Mining today has become quite an entrepreneurial venture - almost like a startup. Tools like our Ethereum mining calculator help the miners determine their profitability beforehand.
Basically, using our Ethereum mining calculators, aspiring miners can check if their mining venture is profitable at all - and if so, when will it start bearing them the appropriate amount of profits, helping them plan in advance about their mining strategy.
While it seems like our Ethereum mining calculator is a great tool for those who are about to set foot in the world of Ethereum mining, it is also a critical tool for those who are already mining. Considering that cryptocurrencies are highly dynamic and much of the factors keep changing on a regular basis - such as the difficulty levels and the price, miners need to constantly monitor their profitability using our mining calculator.
To sum it up - our Ethereum mining calculator keeps into account multiple dynamic factors which miners need to consider while mining for Ether. However, the biggest factor that makes or breaks your mining setup: the price of Ethereum. Let us take a detailed look at the dynamic and ever-changing price of Ether.
Also, you can see how much profit you would have made if you had invested in Ethereum in past: Ethereum Profit Calculator.
One of the biggest factors that make or break any cryptocurrency mining operation is the price of the cryptocurrency being mined. Ethereum, which is the second largest cryptocurrency in the markets by market capitalization, is no stranger to price volatility. While it may appear more ‘stable’ compared to Bitcoin in terms of its price rise and falls - Ether has had its fair share of ups and downs in the past.
In 2016, Ethereum’s price went from $0.9 to $19.93 - and the currency closed the year at $7.9. However, Ethereum’s biggest year came in 2017-18 when the currency bounced from $7.9 to a high of over $1,370 in mid-January 2018. The currency has since been going through a slowdown but who knows what the future holds for Ethereum. The bottom line here is that there is a lot of volatility when it comes to the price of Ethereum. If you were someone who has been mining since the currency was in double-digits, you’d probably know it. However, for those who started mining once Ethereum hit the four-digit mark, this may be a little shocking.
What determines this price movement of Ethereum is more or less the same laws that govern every other cryptocurrency such as Bitcoin. As the demand for Ethereum rises, the price starts to surge and as the demand falls, the price falls too. However, unlike Bitcoin, which is fixed in number, Ethereum is not limited in quantity and hence does not have a ‘rarity’ factor associated to it which Bitcoin has - which is one of the biggest reasons for the price of Ethereum to be relatively stable.
Even the Ethereum News can impact the price volatility of it a lot. So you can keep on it regularly.
Our Ethereum mining calculator is critical for any person involved in mining for Ethereum as the price volatility needs to be checked from time to time. If you started mining when Ethereum was $900 and the current price is $600 - you need to take a look at how it has impacted your progress. Similarly, if you started at $600 and the price is now $900, our Ethereum mining calculator will help you determine the rise in your profits.
Factors That Influence Your Ethereum Mining Profits
There are a number of factors that influence your Ethereum mining profits. The key aspects of these are:
The price of Ether: As discussed above, the price of Ethereum is one of the biggest factors which affects your mining activity. The higher ETH/USD price is, the more profits you make and the lower it falls, the more it dampens down your profits. You can check out Ethereum Price Predictions for coming 5 years.
The cost of mining equipment: Mining is a costly affair and it often costs thousands of dollars for the miners to simply purchase the equipment that they use for cryptocurrency mining. Once they start making profits, miners need to deduct the price of the equipment to determine their ‘break even’ point, beyond which all they have is profits.
Price of Power: Cryptocurrency mining is an activity which consumes a huge amount of electricity. One needs to keep this in consideration. This is why nations and regions with cheap power are becoming the hub of cryptocurrency mining. There’s quite a hullabaloo in the markets when it comes to high-power requirements of mining activities and this, in turn, is helping speed up research on alternative energy sources. Nevertheless, the higher the price of power, the lesser the profits of your Ethereum mining.
Conclusion: It is advisable to use Ethereum Mining Calculators before setting up ethereum mining rig or farm.
Ethereum mining calculators have become a must for anyone mining for Ethereum. Our calculator helps you determine the exact amount of profit you would be making at any point in time in this dynamically changing world of cryptocurrencies. Miners can find a detailed and accurate figure which would help them ensure that their investment in Ethereum mining activity is paying off the right dividends.