When does mining become profitable?

The break-even formula

Months to break-even = Equipment cost / (Monthly revenue - Monthly costs)

This formula assumes revenue and costs remain constant, which is rarely the case in practice.

Example

Miner costing 5,000 €, monthly costs (electricity + maintenance): 200 €/month, estimated monthly revenue: 400 €/month. Monthly net profit = 400 - 200 = 200 €. Break-even time = 5,000 / 200 = 25 months.

Factors that change break-even

  • BTC price: a rise shortens the timeline, a drop extends it.
  • Network difficulty: an increase reduces your revenue.
  • Electricity rate: even a small change significantly impacts long-term profitability.
  • Halvings: reduce block rewards and extend break-even time.