Definition
Break-even electricity rate is calculated as: Break-even ($/kWh) = Daily Revenue / Daily Power Consumption (kWh). If your actual electricity rate is below this number, mining is profitable; above it, you are losing money on electricity alone.
Break-even is a useful benchmark for quickly assessing whether a particular miner is viable at your electricity rate. More efficient miners have higher break-even rates, meaning they remain profitable at higher power costs. This metric does not account for hardware costs or depreciation.
In Simple Terms
The electricity rate where mining revenue equals power costs. Below this rate, mining is profitable.
Break-Even is a term used in Bitcoin mining related to economics & profitability.
Also known as: Break-even rate, BE rate.
Break-even electricity rate is calculated as: Break-even ($/kWh) = Daily Revenue / Daily Power Consumption (kWh). If your actual electricity rate is below this number, mining is profitable; above it, you are losing money on electricity alone.
Break-even is a useful benchmark for quickly assessing whether a particular miner is viable at your electricity rate. More efficient miners have higher break-even rates, meaning they remain profitable at higher power costs. This metric does not account for hardware costs or depreciation.
Understanding break-even is important for Bitcoin miners because it directly impacts mining operations, hardware selection, or profitability calculations. Whether you are a home miner running a Bitaxe or operating a larger ASIC setup, this concept helps inform better mining decisions.
Related terms: Mining Profitability, Electricity Cost, Efficiency (J/TH).