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Reading profit estimates, sensitivity, and payback honestly

Every profitability number is a snapshot of assumptions. Learn the anatomy of an estimate, which inputs move the answer most, and why simple payback is a planning ratio — not a promise.

2026-10-19·updated 2026-10-19·4 min·pow.family research#economics#planning
01

Anatomy of an estimate

Net = (expected coins/day × price) − power cost − pool fee − other costs. Expected coins/day comes from your hashrate share (your hashrate ÷ network hashrate × daily emission) — every term decays or floats: network hashrate grows, price moves, tariffs change. A calculator that shows one net number without its inputs is marketing, not math.

Revenue
coins/day × price
share shrinks as networks grow
Power
kW × 24h × $/kWh
the steadiest line — you control it least
Pool fee
1–3% typical
small chains vary; some are 0%
Net
$/day
label EVERY assumption beside it
02

Sensitivity: what moves the answer

Round-number rig: 100 MH/s on a small chain, $0.10/kWh, netting $4.00/day at today's numbers. Nudge one input at a time:

Input changeEffect on netLikely?
Price −20%$4.00 → $3.10Always possible
Network hashrate +50% (share −33%)$4.00 → $2.90Normal on growing small chains
Tariff $0.10 → $0.15$4.00 → $2.80Check your bill, not the internet
Uptime 100% → 90%$4.00 → $3.60Realistic year-one
03

Simple payback, and its limits

Simple payback = upfront cost ÷ operating NET per period (never gross revenue). $3,000 ÷ $10/day = 300 days; at $5/day it is 600 days; at $0/day it is never. It ignores time-value of money, difficulty growth, repairs, and hardware resale — treat it as a comparison ratio between scenarios, not a date you can book.

  • Include ALL upfront costs (delivery, electrical work, racks) in the numerator.
  • Use net margin per day in matching currency — gross revenue flatters by 2–3×.
  • If the margin is zero or negative, payback is infinite; no spreadsheet formatting fixes physics.
04

See it live on pow.family

The Tools section computes all of this from live coin data — price, network hashrate, and pool fees pulled from the same harvester that feeds the site, with every assumption visible in the input panel.

Sources

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Reading profit estimates, sensitivity, and payback honestly · pow.family