If you mine Ethereum for fun, then the Ethereum mining calculator may not mean a lot to you. However, chances are, you would like to make some money from your little venture, so this does matter to you. There are a lot of Ethereum mining calculators online that you can use, and they do give valid results.
However, those calculators might not take into account all the factors that affect the profitability of Ethereum mining. Hence if you use numerous Ethereum mining calculators, you end up with different figures.
What is an Ethereum mining calculator
The ethereum mining calculator is designed to assist you in determining how much you can profit from an Ethereum miner. An ethereum mining calculator considers all applicable costs that include; fees, hardware costs as well as electricity costs.
There is no doubt that Ethereum mining has created a massive amount of new wealth, and as a result, new industries are emerging every single day to capitalize on this developing industry. To be successful in Ethereum mining, there are a few things that you need to know that include;
The general network hash rate
The block reward
Your personal hash rate
All of these things can drastically change at any point in time. Fortunately, an Ethereum mining calculator estimates your profits by forecasting the costs and future market conditions of Ethereum mining.
How to use the Ethereum mining calculator
1. The first step is entering the hash rate of the Ethereum miner you intend to use.
2. You will then enter some additional information that you might have, like your electricity expense, and pool fees ( if you are mining through a pool) and so on. Nevertheless, you can choose to leave that field empty. Although, the more information you provide, the more accurate your results are going to be.
3. Automatically, your estimated profit will show at the bottom of the calculator. You can then click on, ( show more details ) to see more information.
Facts to remember – (Ethereum mining calculator)
Some values like the block reward and the exchange rate are updated automatically according to the current stats. Nonetheless, one can manually edit any of the automatic fields to simulate possible situations.
The estimation of revenue (in USD) depends on the present exchange rate, which may change over time. The change is often because of the high volatility of Ethereum.
The Profit is dependant on the current difficulty to mine Ethereum. Difficulty can change and most probably will.
You must also remember that earnings are not profit. You still have to consider your mining expenses such as mining hardware and the electricity to run it.
Ethereum mining calculator fields explained
All calculations assume that mining starts immediately at the present difficulty. The initial default difficulty is the existing network difficulty generated from etherscan.io. Furthermore, Difficulty is assumed to go up daily at the rate which is implied by the stated biweekly rate.
The fixed reward for solving blocks is set over time at the specified value. The US Dollar rate of exchange is held fixed, therefore the assumption is that all Ethereum revenues are ultimately held and exchanged for US dollar at the close of the time horizon at the assumed ETH/USD exchange rate. Moreover, the default exchange rate is the daily volume-weighted average exchange rate generated from Bitstamp. The default initial difficulty and exchange rate are restructured periodically throughout the day. The transaction fees, as well as uncle rewards, are excluded from the calculations.
You will need a computer, a GPU, as well as other accessories depending on your setup. The best GPU combines a high competence to give you a high hash rate as well as the economy in power consumption. Moreover, You can include cables, a power supply unit (PSU) and air conditioning equipment, amongst your hardware expenses.
Ethereum Mining Calculator – Conclusion
When you have ethereum, you are not yet home and dry so to speak. The value of ethereum is dependent on its existing rate against the dollar. Whether you will hold the Ethereum or change it to dollars or bitcoins will affect your profit or loss margins.