Rewards calculator is confusing me!

The Rewards Calculator does always show the same amount for “Stake Pool Operation Rewards” and “Running Costs” wether I put 1000ADA or 1Mio ADA in the input field.
Is this correct?
I get 52k ADA per year by investing 1k ADA? Can´t believe that!
What about the 68ADA per day cost then?
Please someone clarify!


Yea, I’m really confused on it as well. I’m even having difficulty understanding what settings are optimal to attract stakers to the pool.

Me too! It doesn’t work.
Just a hunch, but I think it assumes a large enough stake, like in hundreds of thousands of ADA. If I put in a minimum, it breaks and doesn’t update.

Someone needs to make a spreadsheet with formula’s we can review and play with numbers. I think it would be helpful to include the way Cardano calculates the odds you’d get a chance to win based on total stake on the pool. Maybe that’s published, I don’t know. But would be nice to have a spreadsheet to play with stake amounts and minimal stake needed that would show some profitability.

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It appears they are making an assumption about how many blocks a pool is going to validate in a year on average.

The stake pool operation rewards is static and the yield adjusts based on the amount you have pledged.

The running cost is the pool cost you set, essentially 73 weeks * 340ADA (or 68ADA a day as they show)

When I did my initial calculations I just created an excel with some different possible Scenarios in terms of active stake assigned to the pool.

Find it here: Stakepool Profitability Calculation - #15 by zwirny

The main topic is that the 340ADA are only provided if you mint at least one block. This is not the case when you have a small pool where you will not mint blocks in most of the epochs and therefore also do not get any Operator Costs.

I’ve created a reward calculator / simulator that shows the distribution of rewards for small pools in particular

It is discussed in another thread of this forum

Let mw know what you think

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Wow! Very cool!
Glad you did that. I’ll have to spend some time reviewing. Might need my son’s math dregree on part of it though. :slight_smile:

If I know your calculator before I propably would not have created my excel :wink:
Great Work, and also extensivly tested as it seems.
Only thing which feels strage to me is that the Simulation with 500 runs comes up with very different results at least for multiple runs. But this also visualized that luck is an important facter which is good make this transparent as well.

Great to hear that you find it useful. I might as well paste the link here directly to it so easier to find who area reading the the post:

Yes you will see some variability between the Expected reward and the Simulated Reward, particularly for a small pool, and that is due to luck. I found that 500 runs was the middle ground between the calculator remaining responsive and accuracy of simulation … at around 1000 runs the tool became a little slow. This is work in progress, and I will probably add the ability to for the user to change the number of simulations