#Crypto mining 411 – how to calculate daily pay and profit.

DOGE balance showing $14.27 in account.

For the new miner owners out there – calculating expected reward for the day is easy and straight-forward: current account balance in USD or currency divided by current time in 24HR format, then multiplied by 24 hours in a day.

MS Calc screen grab showing ($14.26 / 16.75) * 24.

To handle the time properly, first convert the hours to military time; 4pm is 16. Then to sort the minutes, you convert those to a percentage – 46 minutes is roughly 75 percent of an hour, which is how I get the 16.75 in the screen grab above (second math calc in the history).

This is the gross.

To calculate the profit – estimated – there is a separate formula. See the math below:

MS Calc showing miner power usage in watts summed at 6,120 multiplied by .001 to make Kw and then by power cost of .112 then multiplying by 24 to get a daily power cost.

Tot up the total maximum wattage used by the miners – 2100 for an a1 LoveCore, 1420 for one s9 and 1300 for each of two s9 miners restricted to 1300 watts each. You get 6,120 watts per hour.

Then you take your watts and multiply by .001 or divide by 1,000 to convert to kilowatts.

Next step is to multiply this by the power cost per Kw which, in my area, is roughly eleven and one-fifth cent – or .112 – and I get 68.544 cents per hour or, in currency format, .68544 / hr.

For the daily cost, I multiply by 24 to get 16.45056, or roughly $16.50 in power cost per day.

Profit shown as $3.98 USD with $20.42 gross minus $16.45 power cost.

For the daily expected profit, I have $3.98 after I subtract the power cost of $16.45 from the expected gross of $20.43.

This number, however, is inaccurate for a final profit because the cost of power is also a cost of business, deductible in the tax calculations.

For those who are running miners for a business, it is helpful to ask your tax or financial advisor if having a w2 job that results in qualifying for the EITC while running the business under Schedule C might be the best way to go, as I am NOT a financial advisor and none of this article or any of these blog posts are intended as financial or tax advice.

Hope this helps!

March 19, 2021

About Amy Barnes

Author has extensive experience in Retail, including two years as a supervisor. Educated in Psychology, Financial Accounting, Criminal Justice, and Programming. Work experience in Law Enforcement, Security (IT), Programming (REALBasic, SQL, VB, JAVA), Retail.
This entry was posted in Business, Commentary, Crypto Mining, Crypto Mining, Crypto Mining 411, Finance, Financials, Images, News, ScreenShots, Technology and tagged , , , , , . Bookmark the permalink.