Definition
The break-even electricity price is the maximum rate, expressed in dollars per kilowatt-hour, that a miner can pay for power before energy costs swallow all mining revenue. Pay anything below it and the machine generates positive cash flow; pay above it and every hour the rig runs deepens a loss. Because electricity typically accounts for 60–80% of a mining operation's running costs, this single number is the line between a profitable setup and an expensive space heater.
How it is calculated
The core formula is straightforward: take the machine's expected daily revenue (daily BTC earned multiplied by the bitcoin price), then divide by its daily energy consumption in kilowatt-hours (wattage ÷ 1,000 × 24 hours). The result is the highest viable $/kWh rate. A 3,500 W miner earning $7/day, for example, consumes 84 kWh/day, giving a break-even rate of roughly $0.083/kWh. Anything cheaper is profit on power; anything dearer is a loss.
Why it moves
The break-even rate is not fixed, it tracks hashprice. When bitcoin's price rises or network difficulty falls, daily revenue climbs and the miner can tolerate a higher power cost. When difficulty ratchets up or price falls, the break-even rate compresses, sometimes below what the operator actually pays, at which point the rational move is to power down (the "shutdown price"). Machine efficiency matters too: a modern sub-20 J/TH ASIC has a far higher break-even rate than a legacy 30+ J/TH unit on the same power bill.
Efficient operators target power below $0.06/kWh; home miners can lower their effective rate through heat reuse or behind-the-meter generation. See also miner capitulation for what happens when break-even is breached network-wide.
Run your numbers in the ROI & payback calculator.
In Simple Terms
The break-even electricity price is the maximum rate, expressed in dollars per kilowatt-hour, that a miner can pay for power before energy costs swallow all…