Cloud Mining Profit Calculator
Cloud mining allows you to mine cryptocurrency, such as Bitcoin (BTC), without investing in expensive hardware or infrastructure.
Users can lease equipment or rent hash power from a third-party company. While a great system, it has some challenges.
Enter the cloud computing calculator- a tool that helps a miner estimate profits from renting hashing power and determine whether it’s worth the investment.
Here’s how a Bitcoin hashrate calculator works.
Discover your potential earnings with our Bitcoin Cloud Mining Calculator. Use our cloud mining profit and ROI calculators to estimate and maximize your cryptocurrency investment returns
How Does the Calculator Estimate Profits?
When estimating potential profits of mining operations, calculators take into account the cost of cryptocurrency, amount of energy used, the price of energy, hashrate conversions, or mining difficulty.
In calculating cloud mining profits a third-party service is responsible for the energy expended and the handling and maintenance of hardware.
Therefore, a cloud mining RoI calculator may require:
- Hashrate fee
- Hashrate quantity
- Contract duration
- Service fee - we do not charge service fee, it is included in the price already.
The hashrate calculator then analyses various parameters — network complexity, the current price of the cryptocurrency, and exchange rate — and offers the user accurate and up-to-date data about potential profit.
Some crucial terms and formulas that calculate the potential profit are:
Static Output
This is the amount of a particular cryptocurrency that can be mined within a specified period (day).
Static Output = (Currency Mined Over Duration x Reference Currency Price) / Duration
Static Output Ratio
This ratio may be expressed as a percentage. It compares the total costs incurred vs. the output.
Static Output Ratio = (Duration Static Output) / Duration Contract Fee
Duration Static Output (day, month, year)
The duration static output is calculated as:
Duration Static Output = Currency Mined in Duration x Reference Currency Price
Static Output of Bitcoin
The static output of BTC is determined by:
Static Output of BTC = (Period Contract Fee) / Duration of Static Output of BTC
Static Cost Recovery Time
The static cost recovery time calculates the time before a user can make a profit with a cloud mining service:
Static Cost Recovery Time = Duration Contract Fee / (Duration Static Output)
Understanding the Significance of Each Calculator Field
Depending on the depth of analysis offered or the company that provides the service, different Bitcoin cloud mining calculators may display a number of different fields.
It’s crucial to understand the significance of each field to determine potential ROI.
Some fields that a hashrate profit calculator may require are:
Service Fee. Service fee is already included in our plans.
Contract Duration. Starting 1 month.
Hashrate. This is the total power the third-party hardware uses to run and solve different hashing algorithms.
The figure is usually expressed in TH/s where 1 TH/s = 1,000 GH/s. The greater the hashing power offered by the service, the higher the profit potential.
Hashrate Quantity. This is the computing power a user intends to rent out from our company. A higher hashrate indicates a greater chance of profit but also needs a bigger investment.
Mining Difficulty. The mining difficulty is a measure of how difficult it is to solve the complex mining cryptographic puzzles.
Mining difficulty is in a constant state of flux. In most calculators, however, the mining difficulty is fixed by the service. It may be periodically updated but doesn’t account for future variations.
Currency Price. This refers to the current value of the cryptocurrency being mined. These values are set automatically but can change drastically over time.
Disclaimer
A Bitcoin hashrate calculator may make several assumptions related to future cryptocurrency prices, mining difficulty, or calculation of network hash rate. These figures are variables and far from stable. In most cases, calculators do not consider possible future changes to the data, which significantly alter a potential profit forecast.
It’s crucial to note that all these calculations are only approximations of total costs and revenues.