Break-even point
Also called: ROI, return on investment, break-even, payback period
The break-even point is when a mining machine's net earnings have paid back its purchase price. It is also called ROI.
The break-even point, often called ROI (return on investment), is the point at which a miner's cumulative net income equals what it cost. Net income is the rewards received minus running costs: electricity, hosting, pool fees and maintenance. Before that point, the machine is still paying for itself; after it, it generates a profit.
The term is also used for the maximum electricity price above which a machine costs more than it brings in. Both thresholds are constantly shifting: a rise in network difficulty, a drop in price or a halving pushes them further away, while a rise in price brings them closer. An ROI period calculated on the day of purchase is therefore only an estimate at a given moment, never a guarantee.
To judge a machine, weigh three things together: its price, its hashrate and its energy efficiency. A more expensive but more efficient model often holds up better against difficulty increases than a cheap, power-hungry one. Also think about resale value: a recent ASIC generally holds its value better than an older generation.
Our profitability calculators help you estimate these thresholds with your own electricity cost.