MiningCityUSA research
How Electricity Costs Affect Bitcoin Mining
A worked example showing why power rates can change a mining operation’s economics.
This article contains no compensated product links.
Bitcoin mining converts electricity and computing equipment into an opportunity to earn revenue. The electricity bill keeps arriving even when revenue falls. That makes power cost a necessary starting point for evaluating an operation.
The examples below are hypothetical calculations, not equipment specifications, power offers, or revenue forecasts. They isolate electricity expense so the effect of a changing rate is easy to see.
The basic calculation
Electricity cost = power in kilowatts × operating hours × electricity rate per kilowatt-hour.
Suppose one miner draws 3,500 watts, or 3.5 kW, and operates continuously. Daily consumption is 3.5 × 24 = 84 kWh. For a 30-day month, consumption is 2,520 kWh.
| Illustrative rate | Daily electricity cost | 30-day electricity cost |
|---|---|---|
| $0.05/kWh | $4.20 | $126.00 |
| $0.08/kWh | $6.72 | $201.60 |
| $0.12/kWh | $10.08 | $302.40 |
| $0.20/kWh | $16.80 | $504.00 |
Moving from eight cents to twelve cents per kWh adds $100.80 per miner per 30-day month. With ten identical miners under these assumptions, the difference is $1,008. Revenue does not automatically increase to cover it.
Use the delivered cost
A quoted energy rate may not be the full bill. Review the applicable tariff or hosting contract for delivery charges, demand charges, fixed fees, taxes, minimum commitments, and time-dependent pricing. Demand charges are generally based on a measured peak in kW rather than simply the energy consumed in kWh. Cooling and auxiliary loads also consume electricity.
At a hosted facility, understand which costs are included in the advertised rate. Ask how downtime, repairs, curtailment, and termination are handled. A low headline rate is difficult to evaluate without those terms.
Separate power cost from profitability
The calculator on MiningCityUSA estimates electricity expense. It does not estimate Bitcoin revenue or net profit. A broader model needs assumptions for hardware cost, hash rate, network difficulty, rewards, Bitcoin price, pool charges, uptime, cooling, repairs, financing, and depreciation.
For an illustration only, assume $10 per day of revenue before operating expenses. At eight cents per kWh, the $6.72 electricity bill leaves $3.28 before every other cost. At twelve cents, the $10.08 electricity bill already exceeds that assumed revenue. The $10 figure is invented for this example and must not be treated as an expected return.
Stress-test the operation
Evaluate several power rates and revenue scenarios. Include reduced uptime and additional facility loads. Where rates change by time of day, calculate costs for each operating interval rather than multiplying by a single convenient rate. Do not assume uninterrupted operation is the best economic choice in every scenario.
My assessment
The useful question is not simply whether a miner can run. It is whether its economics remain acceptable when power prices, revenue, and availability move against the initial plan. Start with measurable consumption and contract terms, then build the wider model.
Use the MiningCityUSA electricity-cost calculator to explore your own power assumptions.
Sources and methodology
Official reference material reviewed October 2, 2026. Product guidance is based on published documentation, not a hands-on test. The mining examples use explicitly stated arithmetic assumptions.
Educational information only. Product features and terms may change. Obtain qualified advice for your circumstances.