Mining shutdown price is the coin price at which a specific miner’s expected revenue equals its operating cost. Below that threshold, the machine may be cash-flow negative under the assumptions used. Above it, the machine may cover those costs and generate an operating margin.

There is no universal shutdown price for Bitcoin or another proof-of-work coin. The result depends on the machine, actual power draw, local electricity cost, net expected daily coin output, uptime, and other site costs. This guide explains how to calculate mining shutdown price with a simple model first, then improve it for real operating decisions.

What mining shutdown price means

A shutdown price is a break-even threshold, not a forecast of where a coin’s market price will go. It answers a narrower operational question: at what coin price would this miner stop covering the costs included in the calculation?

The simplest version uses electricity cost only. This electricity-only shutdown price shows whether a machine can cover the cost of power under current network conditions.

A more complete model includes costs such as pool fees, hosting, cooling, maintenance, labor, demand charges, and downtime. That result is more useful for a farm operator, but it requires better records and more assumptions.

Two miners with the same ASIC can have very different thresholds if one has a lower all-in power rate or better uptime.

The core mining shutdown price formula

The basic approach has two parts. First, calculate the machine’s daily operating cost. Then divide that cost by the expected number of coins mined per day.

Calculate daily electricity cost

Use this formula: Daily electricity cost = Power draw in kW × 24 × electricity price per kWh

For example, assume an ASIC consumes 3 kW and the all-in electricity rate is $0.06 per kWh: 3 × 24 × $0.06 = $4.32 per day

The machine’s estimated daily electricity cost is $4.32.

Use the rate you actually pay, not only the energy supply rate shown in a contract. Depending on the site, the effective rate may include delivery charges, taxes, demand charges, or other fees. If those costs are meaningful and recurring, leaving them out makes the shutdown price look lower than it really is.

Convert expected coin output into a break-even price

Next, estimate the coins the machine should earn per day under current conditions. This can come from pool payout data, a mining calculator, or a revenue estimate based on hashrate, difficulty, rewards, and fee assumptions.

Then use: Electricity-only shutdown price = Daily electricity cost ÷ Expected daily coin output

The output must be expressed in the mined coin and should be net of pool fees. For a Bitcoin miner, divide daily costs in dollars by expected daily BTC output after applicable pool fees. The answer is a dollar-per-BTC threshold.

If you instead model pool fees as a separate daily cost, use gross expected coin output and do not reduce output for the same fee. Count pool fees only once.

This formula works because it asks what price would make the value of the expected daily coin output equal to the day’s cost.

A worked Bitcoin mining example

Suppose a miner has these assumptions:

• Power draw: 3 kW
• Electricity price: $0.06 per kWh
• Expected output: 0.00012 BTC per day, net of pool fees

First, calculate daily electricity cost: 3 kW × 24 hours × $0.06 = $4.32 per day

Then calculate the electricity-only Bitcoin mining shutdown price: $4.32 ÷ 0.00012 BTC = $36,000 per BTC

Under these assumptions, $36,000 is the electricity-only break-even BTC price. If the estimated daily BTC output and power rate remain unchanged, revenue at that BTC price would equal the electricity bill for the machine.

What the example leaves out

The $36,000 figure is not automatically the right shutdown decision point. It excludes lost production during downtime, maintenance, cooling, hosting, and the cost of capital tied up in hardware. It also excludes pool fees only because the example uses output that is already net of those fees.

It assumes the machine really produces 0.00012 BTC per day. If network difficulty increases, the same hashrate may earn less BTC per day. If transaction fees change, pool earnings may also change. Treat the calculation as a current estimate, not a permanent threshold.

Before making a shutdown decision, compare the estimate with actual pool payouts and uptime over a recent seven-day period. This helps account for performance variation, interruptions, and payout differences that a calculator may not capture.

Build an all-in shutdown price

For a more realistic mining break-even price, add every recurring cost that matters to the decision.

All-in shutdown price = Total daily operating cost ÷ Expected daily coin output

Total daily operating cost might include:

• Electricity and site infrastructure overhead
• Pool fees, if not already reflected in net coin output
• Hosting or colocation charges
• Cooling and ventilation costs
• Routine maintenance and repair allowance
• Labor, monitoring, and management costs
• Demand charges or other utility charges
• A conservative allowance for downtime

If the machine in the example has $1.20 per day in additional recurring costs, total daily operating cost becomes $5.52: $4.32 + $1.20 = $5.52

Using the same expected output: $5.52 ÷ 0.00012 BTC = $46,000 per BTC

The all-in threshold is now $46,000 per BTC. That gap shows why electricity-only calculations are useful for quick screening but may be inadequate for a full operating decision.

Separate cash shutdown price from full-cost break-even

It can be helpful to keep two figures.

The cash shutdown price includes costs avoided when the machine is switched off, such as electricity and certain variable hosting or pool costs. It supports short-term decisions during weak revenue periods.

The full-cost break-even price also includes fixed or longer-term costs, such as hardware depreciation, financing, and overhead. It is more useful for deciding whether a machine or site is economically viable over time.

Do not assume the same threshold fits both decisions. A miner may keep running above its cash threshold even when it has not recovered its full investment.

Why shutdown price changes over time

Mining shutdown price changes whenever either cost or expected output changes. A calculation that was accurate last week may need to be refreshed today.

The main drivers are:

• Electricity rate: Higher all-in power cost raises the shutdown price directly.
• Machine efficiency: A more efficient ASIC uses less energy for the same hashrate, lowering the threshold.
• Network difficulty and hashrate: Higher difficulty generally reduces expected output for a fixed machine, raising the shutdown price.
• Block rewards and transaction fees: Changes in rewards or fee revenue can affect expected daily earnings.
• Pool fee and payout method: These affect the net output used in the calculation.
• Uptime: Downtime reduces output while some costs may continue.
• Merged-mining revenue: For applicable coins, additional merged-mining rewards can affect the revenue side of the model.

Recalculate mining shutdown price whenever the power contract changes, a machine is underperforming, difficulty moves materially, or expected pool output changes. A pool profitability tool can provide a useful current starting point, but compare its assumptions with the machine’s actual hashrate, power draw, recent payouts, uptime, and site costs.

Common calculation mistakes

The most common mistake is dividing a daily cost by a revenue figure already expressed in dollars. Use expected coin output when solving for a coin price. If daily revenue is already in dollars, it is useful for current profitability, but it does not directly produce a shutdown price without separating the coin-price assumption.

Another mistake is double counting pool fees. Either use net expected coin output after pool fees or add pool fees as a daily cost; do not do both.

Using the ASIC’s advertised power consumption instead of measured draw can also distort the result. Site-level losses, cooling, and operating conditions can make actual consumption higher.

Finally, avoid treating a break-even threshold as an automatic command to shut down. A decision may also depend on curtailment terms, restart costs, maintenance windows, treasury strategy, contractual obligations, and expectations about near-term difficulty changes. The calculation is a disciplined input to operations, not a substitute for operational judgment.