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💰 How to Calculate Solo Mining Profitability

🔵 Intermediate📚 20 min read🔄 Updated Feb 2, 2026
💡
Master the Math
Understanding profitability calculations helps you make smart mining decisions. This guide covers everything from basic formulas to advanced expected value analysis.

🎯 Why Calculate Profitability?

Solo mining profitability is tricky because it's probabilistic - you might never earn anything, or you might hit the jackpot tomorrow. But with proper math, you can understand your expected value and make informed decisions.

📊 Pool Mining (Easy):

Predictable, simple math. You know exactly what you'll earn daily.

Revenue = (Your Hashrate / Network Hashrate) × Daily Blocks × Block Reward × (1 - Pool Fee)

🎰 Solo Mining (Complex):

Probabilistic, uncertain. Expected value vs actual outcome.

Expected Value = Block Reward × Probability of Finding Block - Electricity Costs

⚠️ Reality Check:

Solo mining with home equipment is mathematically profitable on average, but practically you'll likely earn nothing. The math says "yes" but reality says "probably not in your lifetime."

📋 Key Factors Affecting Profitability

1. Your Hashrate (TH/s)

How many hashes per second your equipment can calculate. Higher = better odds.

Bitaxe
1.2 TH/s
Avalon Nano
6 TH/s
Antminer S21
200 TH/s
Farm (10x S21)
2,000 TH/s

2. Network Hashrate (EH/s)

Total mining power worldwide. Changes every ~2 weeks with difficulty adjustment.

Current (Feb 2026): ~500 EH/s (500,000,000 TH/s)
Your share matters: 1 TH/s = 0.0000002% of network

3. Block Reward (BTC)

Current reward: 3.125 BTC per block (halves every 4 years)

2020-2024:6.25 BTC/block
2024-2028:3.125 BTC/block (current)
2028-2032:1.5625 BTC/block (future)

4. Bitcoin Price (USD)

Directly affects reward value. Assumes ~$100,000/BTC for examples in this guide.

3.125 BTC × $100,000 = $312,500 per block

5. Electricity Cost ($/kWh)

Your biggest ongoing expense. US average: $0.12/kWh

Cheap (solar/hydro)
$0.03-0.06/kWh
Average
$0.10-0.15/kWh
Expensive
$0.20-0.40/kWh
Residential CA/NY
$0.25-0.35/kWh

6. Power Consumption (Watts)

How much power your miner draws 24/7.

Bitaxe Gamma:15W (~$0.043/day)
Avalon Nano 3S:60W (~$0.17/day)
Antminer S21:3500W (~$10.08/day)

7. Hardware Cost (Initial Investment)

One-time purchase price affects ROI timeline.

Bitaxe
~$200
Avalon Nano
~$300
Antminer S21
~$3,000
10x S21 Farm
~$30,000

🧮 Basic Profitability Formula

Let's start with the core equation:

Daily Electricity Cost:

Pool Mining Profitability (For Comparison):

⚠️
Pool Mining Reality
Even with steady pool payouts, small home miners lose money due to electricity costs. Solo mining has worse odds but bigger potential payoff.

🎲 Solo Mining Mathematics

Solo mining requires probability calculations:

Step 1: Calculate Your Share of Network

Step 2: Calculate Average Time to Find Block

Step 3: Calculate Probability Over Time

Quick Reference Table:

Your HashrateAvg Years to BlockDaily OddsYearly Odds
1.2 TH/s (Bitaxe)~7,926 years1 in 2,894,0001 in 7,937
6 TH/s (Avalon)~1,585 years1 in 578,8001 in 1,587
200 TH/s (S21)~48 years1 in 17,3611 in 48
2,000 TH/s (10x S21)~4.8 years1 in 1,7361 in 4.8

💎 Expected Value vs Reality

Expected value is what you'd earn "on average" if you mined forever. Reality is different:

Expected Value Formula:

📊 What Expected Value Says:

"If you mine forever, you'll earn $39/year on average"

  • • Mathematically profitable
  • • Assumes infinite timeline
  • • Ignores difficulty increases
  • • Treats probability as certainty

🎰 What Reality Says:

"You'll probably mine for 30 years and earn $0"

  • • 95%+ chance of finding 0 blocks in lifetime
  • • Small chance of huge jackpot
  • • Pay electricity for decades, likely earn nothing
  • • Or get lucky year 1 and make $312k
💡
The Paradox
Solo mining is profitable "on average" but unprofitable "in practice" for small miners. It's like saying buying one lottery ticket per year is +EV because someone will win - technically true, practically useless.

Realistic Scenarios Over 10 Years:

Most Likely (99.87%):0 blocks found
Total spent: $158 electricity + $200 hardware = -$358 loss
Lucky (0.126%):1 block found
Revenue: $312,500 - $358 costs = +$312,142 profit (life-changing!)
Very Lucky (0.008%):2+ blocks found
Revenue: $625,000+ - $358 costs = +$624,642 profit (retire early!)

📈 ROI (Return on Investment) Calculation

ROI tells you how long until you recover your hardware investment:

ROI Formula:

ROI Comparison Table:

EquipmentHardware CostPool ROISolo Expected ROIReality
Bitaxe$200Never8.5 yearsProbably never
Avalon Nano$300Never7.2 yearsProbably never
Antminer S21$3,000~4 years3.1 yearsMaybe (48yr avg)
10x S21 Farm$30,0002.8 years2.4 yearsLikely (4.8yr avg)

⚖️ Break-Even Analysis

At what point does your operation become unprofitable?

Break-Even Electricity Price:

Break-Even Bitcoin Price:

Break-Even Table:

EquipmentMax $/kWh (Pool)Min BTC PriceProfitable?
Bitaxe (1.2 TH/s)$0.029/kWh$40,000No (at $0.12/kWh)
Avalon (6 TH/s)$0.033/kWh$32,000No (at $0.12/kWh)
S21 (200 TH/s)$0.144/kWh$29,000Yes (at $0.12/kWh)

🌍 Real-World Example Scenarios

❌ Scenario 1: Hobby Miner (Typical)

Setup:
  • • Bitaxe Gamma (1.2 TH/s)
  • • Electricity: $0.12/kWh
  • • Mining solo for fun
  • • Hardware cost: $200
1 Year Results:
  • • Electricity paid: $15.77
  • • Blocks found: 0 (99.87% probability)
  • • Total loss: -$15.77
  • • Cumulative loss: -$215.77 (hardware + electricity)
10 Year Projection:

99.87% chance: Spent $357.70 total, found 0 blocks = -$357.70 loss
0.126% chance: Found 1 block = +$312,142 profit
0.008% chance: Found 2+ blocks = +$624,142+ profit

Conclusion: Lost money but had fun. Worth it for the hobby!

⚠️ Scenario 2: Small ASIC (Risky)

Setup:
  • • Antminer S21 (200 TH/s)
  • • Electricity: $0.08/kWh (cheap)
  • • Mining solo hoping for jackpot
  • • Hardware cost: $3,000
Year 1:
  • • Electricity: $2,520 ($6.90/day × 365)
  • • 98% chance: 0 blocks found
  • • 2% chance: 1 block = $312,500 revenue
  • • Net: -$2,520 or +$309,980
Year 5:

Total electricity: $12,600
Total hardware: $3,000
10% chance found 1+ blocks = huge profit
90% chance found 0 blocks = -$15,600 loss

Conclusion: High-stakes gambling. Not recommended without cheap electricity.

✅ Scenario 3: Mining Farm (Viable)

Setup:
  • • 10× Antminer S21 (2,000 TH/s total)
  • • Electricity: $0.05/kWh (commercial)
  • • Mining solo
  • • Hardware cost: $30,000
Year 1:
  • • Electricity: $15,330 ($42/day × 365)
  • • Expected: ~0.21 blocks found (21% chance)
  • • 21% chance: 1 block = $312,500 - $15,330 = +$297,170
  • • 79% chance: 0 blocks = -$15,330 loss
Year 5:

Expected blocks found: ~1.05 blocks
Revenue: ~$328,125
Total costs: $106,650
Net profit: +$221,475
ROI: Hardware recovered + profit

Conclusion: Reasonable solo mining strategy with professional scale and cheap power.

❌ Common Calculation Mistakes

1. Forgetting Electricity Costs

Many calculators show gross revenue. Always subtract electricity! It's your biggest ongoing expense.

2. Ignoring Difficulty Increases

Your earnings decrease 20-40% per year as difficulty rises. Today's profitability ≠ next year's profitability.

3. Confusing Expected Value with Reality

Just because the math says +EV doesn't mean you'll profit. 99% of small solo miners earn $0.

4. Not Factoring Hardware Depreciation

Your ASIC loses 50% of value in 2 years and becomes worthless in 4. Factor this into ROI.

5. Using Wrong Network Hashrate

Always use current network hashrate (~500 EH/s in 2026), not historical data. It changes every 2 weeks.

6. Assuming Bitcoin Price Stays Flat

BTC volatility dramatically affects profitability. $50k vs $150k BTC = 3x difference in revenue.

🛠️ Calculators & Tools

🎰 MineSolo Calculator (Our Tool)

Real-time solo mining probability calculator with live difficulty data, expected value, and profitability analysis.

  • • Real-time network hashrate & difficulty
  • • Accurate probability calculations
  • • Expected value analysis
  • • 400+ miner database
Use Calculator →

📊 Other Useful Tools:

  • NiceHash Calculator: Good for pool mining profitability
  • WhatToMine: Multi-coin profitability comparison
  • ASIC Miner Value: Track ASIC resale values
  • Blockchain.com Stats: Live network difficulty & hashrate

📝 Spreadsheet Template:

Create your own custom profitability spreadsheet with these columns:

Input Variables:
  • • Your hashrate (TH/s)
  • • Power consumption (W)
  • • Electricity cost ($/kWh)
  • • Hardware cost ($)
  • • BTC price ($)
  • • Network difficulty
Calculated Outputs:
  • • Daily electricity cost
  • • Solo probability per day/year
  • • Expected daily revenue
  • • Expected ROI timeline
  • • Break-even BTC price

🎯 Ready to Calculate?

🎰

Use Our Calculator

Real-time profitability analysis

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Learn More

Solo vs pool comparison

Read Guide →
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