How Is the Breakeven Point for a Mining Operation Calculated?

The breakeven point is the minimum cryptocurrency price or maximum operational cost at which a mining operation neither makes nor loses money. It is calculated by equating the total revenue (block rewards plus transaction fees) to the total costs (electricity, hardware depreciation, hosting, and maintenance).

The most critical variable is often the electricity cost per kilowatt-hour relative to the miner's efficiency (Joule per Terahash). Staying below this point is essential for profitability.