Monero Mining Calculator | Role of Monero Mining Profitability Calculator

When researching something, you’d always want to know what kind of profits you’re making, right? Of course you would!
Now, let’s say you’d want to mine crypto, where would you start? What crypto would you even pick? Is mining still profitable?
You’d be thrilled to hear that it still is quite profitable. What would you mine? What about something that has a promising future, like Monero mining? You might be thinking “well where do I start”. Check out a list like this one that may help you make a decision? Or perhaps, you already opted for Monero mining? If so, then that’s easy, just make sure you’re using the Monero mining calculator.
Let’s try to break it all down now!

Some Details About Monero Itself – What is it?

Monero is a cryptocurrency which focuses on private and censorship-resistant transactions.
When looking through other cryptocurrencies, most of them have transparent blockchains. What that means is that ALL transactions are traceable by anyone who’s willing to do so. Those transactions can then be linked to someone’s real-world identity.
Monero, being that it has a heavy emphasis on privacy, shields you from all that. It uses cryptography to mask the addresses included in the transaction, as well as the amounts of said transactions.

The development of Monero is sponsored by the community. Therefore, Developers do not withhold ay stakes from the project as it is solely dependent on the community’s contributions.

Mining Monero – is it profitable?

Before going any further let’s start by understanding the basis of mining Monero and how profitable it is or isn’t. After all, the reason you clicked on this article is that you are interested in mining Monero for a profit; or perhaps you are already in the game in you are seeing reassurance.

The process of mining Monero is under a principle that believes in equality and equal opportunities for all. Therefore individuals receive a reward for their activities in joint mining pools.

Monero Mining Pool vs Solo Miner

The first step you need to take before you begin mining Monero is deciding whether you want to be a solo miner or join a Monero mining pool. What is a Mining Pool? a mining pool is a group of Monero miners that bring their hardware together thereby making it more powerful. Hence their chances of verifying transactions in a competitive environment increases. A small pool fee is charged and the reward is equally split between mining pools.

On the other hand, even though you do not have to share rewards when mining by yourself; it is a great risk especially for beginners. You would need to invest a lot of money in your hardware, and even then your chances of verifying a transaction are low compared to mining pools.

How to Mine Monero

On the basis of a network hash rate of 307 MH/s and using an XMR – USD exchange rate of 1 XMR = $62.21, the mining metrics are calculated. The variation of these figures depends on the total network hash rate and the XMR to USD conversion rate. However, the block reward is fixed at 2.856261298652 XMR, and future block reward, as well as hash rate, are away from taking into consideration. 120 seconds is the average block time that is used in the calculations. Well, $0.12 per kWh is the electricity price that is used to produce these metrics. Over time, the network hash rate varies, and all this is simply evaluated on the basis of new values.

What is Monero Mining Calculator?

Wouldn’t it be great if there was a way to calculate all the necessary cost, like fees, electricity, and necessary hardware, and then know what your mining returns would be like?
I bet you can already see where this is going. The Monero mining calculator is an indicator of profitability. It gives you an estimated profit amount that you can get from Monero mining.

The Monero mining calculator functions on a simple principle. It gets different input related to the mining hardware setup and applies the Monero mining algorithm over it. Which in turn calculates the amount of Monero generated.

How to use Monero Mining Calculator

  • First, you need to enter the hash rate of Monero miner.
  • Click on “calculate mining returns,” to receive the estimated mining returns.
  • Due to the current Monero exchange rate, mining profits that are displayed in the calculator will differ.
  • The profit amount depends on Monero mining difficulty. Therefore, it is vital to know that from the past to the present stage, the mining difficulty is changing and it will continue to change in the future.
  • You should consider the mining hardware cost and the electricity cost while you calculate the mining returns.

Important Notice:

  • The exchange rate can or will possibly change from time to time as earnings are displayed in USD on the basis of the latest exchange rate.
  • To mine Monero, the profit results on the basis of recent difficulty. Well, the difficulty level definitely will change. Derived from experience it usually rises as time goes by.
  • Your earnings are not profit. You must consider the cost of your mining hardware as well as the electricity to run it or cool down if required.
  • You can adjust some of the values manually that seem wrong such as block reward, exchange rate, etc. However, generally, all of them are updated. To stimulate possible scenarios you can avail this option.

Fields of Monero Mining Calculator

In the Monero Profit calculator, you will see all the following components:

Difficulty Factor: Just as with all cryptos, the more you mine Monero, it becomes harder to mine precisely. It gets harder because of Difficulty, which is a metric that evaluates “how hard it is to mine?” right now. This information does not need to be changed as it directly derives from the Monero network.

Hash Rate: This metric tells you how powerful your miner is. As the more Hash Rate it can produce, the more rewards of mining you will get. Generally, if your miner was manufactured by someone, it’s just an online search away to the Hash Rate of a particular miner.

XMR/Block Reward: It shows how many XMR distributed each time a successful block is mined. To keep the balance in Monero money supply, this information needed to be updated from time to time.

XMR/USD Exchange Rate: Pretty straight forward. This tells you how much USD you can get from 1 XMR.

Pool Fees: Normally, to expand the probability of strong mining,  miners group together into mining pools. From the earnings, the pool takes a specific fee.

Hardware Cost: How much does buy a Monero miner set you back in financial terms.

Power: It explains how much energy your miner consumes. The manufacturer is responsible for informing you with this piece of info.

Power Cost: Here you need to clarify how much you are paying for a Kilo Watt per hour of electricity in USD. And the Monero calculator can take that into consideration.

Calculating Monero Mining Profitability

Monero mining profitability requires effort from miners and mining hardware. There are risks of shutdowns and attacks of Monero without miners. Therefore, to earn mining rewards and secure the network, miners should solve complex mathematical problems successfully and issue a new block on the blockchain. With time, Monero price is expected to rise and, it will become competitive; therefore, there is a need to calculate Monero mining profitability.

Components Involved in Calculating Monero Mining Profitability

There are some components which can make a difference when using the Monero calculator to calculate the profit. The components that work in the calculation of Monero mining profitability consists of;

Hash Power

A hash comes as a result of a hash function. A hash rate refers to a time taken by a computer to finish a transaction in a particular coin algorithm. In other words, a high hash rate ensures faster success in determining the next block enabling more rapid rewards. Therefore, the GPU will indicate the number of hashes that can be finished per second.

High Power Consumption 

Mining needs a lot of juice to keep it going at full speed. The consumption differs based on the efficiency of the PSU used by a miner. The lower the efficiency, the higher the power consumption is. In other words, when you use the Monero profit calculator, you can discover the difference in profitability because its calculator takes that in to affect. Therefore, the mining efficiency calculation is done by dividing the power being consumed with the hashing speed. The profits will differ since power tariffs are not the same in all parts of the world.

In addition, joining a mining pool rather than going it alone can bring faster rewards. You divide the reward in a pool while you have 100% profits if you succeed. However, it is crucial to understand that it’s not always profitable.

You may have used the Monero mining calculator and bought the best GPU money can buy. The price fluctuations, volatility and nature of the industry can result in all calculations going wrong. It is also essential that you keep a watchful eye on the latest hardware, sell the obsolete hardware, and invest in new equipment. All of which will bring a positive impact on the mining process.

How to Calculate Monero Mining Profitability Returns?

In short, for you to use the Monero mining calculator, you will need to input the required information such as the cost of electricity and the mining hardware. After the required information, you will notice the estimated amount that the mining process will generate.

Monero demand, supply, and price, as well as mining difficulty, are some of the factors that are important because these factors have a serious impact on the results.

Final Thoughts

Well, now you have enough information about the Monero mining calculator that helps in estimating Monero mining profitability.
Now, we’d like to share some crucial points which you should into account before you take the plunge:

The mining rewards differ from inflation. The reason behind it is mining rewards include fees that people paid, who are making the transactions. For the blockchain, the inflation rate acts as an incentive to become secured on an ongoing basis.

In the Monero GUI, you can use the mining feature, to do solo mining. It is similar to a lottery to check if you are able to solve the whole mining puzzle randomly for each one of the blocks before any other mining gets to succeed.

For a more consistent payout, you really should try to turn you focus to a mining pool as it is encouraged. Hash algorithm of Monero is more complicated than the hash algorithm used for other cryptos. It shows that you must not directly compare the hash rates among more cryptos.

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