To calculate the voltage generated when a magnet passes over a coil, Faraday's law of electromagnetic induction is essential, expressed as E = -(N*(change in flux)) / t. The change in magnetic flux can be determined using the formula flux = B*A*cos(theta), where B is the magnetic field strength, A is the area of the coil, and theta is the angle between the magnetic field and the normal to the coil. The discussion also highlights the importance of maximizing the magnetic field strength, coil area, and the number of turns in the coil while minimizing the time for maximum voltage generation. Concerns are raised about the complexity and feasibility of using magnets on the rotor in a generator design, suggesting a more traditional approach may yield better results. The conversation concludes with a caution against getting involved in potentially unfeasible projects, emphasizing the need for realistic expectations in energy generation.