What is ROI in Bets?

To measure the success of bets, an indicator such as ROI is used. In particular, it is used on our site and often causes bewilderment among beginners, who fill the admin with the question – what is ROI in bets? We answer.

The abbreviation ROI is formed from the English Return on Investment. The ROI indicator is used not only in bets, but also in many other areas of economic and financial activity.

The ROI formula looks like this:

ROI = Net income/Investments * 100%

The ROI formula in the bets is as follows:

ROI = Net profit /bet amount * 100%

What is ROI and why is it needed at all, if you can just see who has what profit?

It’s simple. Profit is an indicator that in itself has little to say about. For example, Ivan won $10. Is he a good forecaster or bad? This can’t be said without knowing how much money he had originally and how many bets he had to make in order to win so much. If Ivan made a million bets on $100 and won only $10, then he can’t be called successful, right? And if Ivan made only 3bets of $2 and earned $10 – the picture changes immediately, does not it?

That is, ROI is necessary in order to show the effectiveness of the forecaster.

To make it easier to understand, let’s take for an example from real life. Janitor John earned $200. Notary Nick earned $50. Is it possible to say that the janitor John is more successful than the notary of Nick? No, it’s impossible, because we do not know how much effort they made to earn so much money. The janitor earned 4 times more, but for this he had to sweep the streets a month without days off. The notary earned 4 times less, but for this he had to spend only 10 minutes to certify the document. So which of them is more successful? Obviously, the efficiency of the notary of Nick is higher.

So it is in bets. For example, handicapper Alex123 profit is $200, and handicapper Brad666 is $100. If there was no ROI indicator, one would think that Alex123 is more profitable than Brad666. But what if Alex123 won $200, making 1000 bets at $10, and Brad666 won his $100, making only 20 bets of $10? Obviously, in this case Brad666 is more effective and successful. That’s what ROI is for – it shows the real effectiveness of the player. Shows what his profit is for each dollar he sets.

How to calculate ROI? It’s simple. Let’s say you made 40 bets for $10. So, the sum of your bets is $400. The net profit based on these bets was $25. We consider ROI:

ROI = 25/400 * 100% = 6.25%

Thus, by calculating the ROI of different forecasters, one can compare their real effectiveness. To do this, this indicator is used in bets.

It is important to note that if two forecasters have the same ROI, then the one with the longest member of the distance is more successful. For example, making an ROI of 10% at a distance of 10 bets is much easier than at a distance of 100 bets. Why? Simply:the more distance, the more investment. And we divide the investments. In other words, an ROI of 10% at a distance of 10bets of $10 is only 10 $of profit, and the same ROI for a distance of 100bets of $10 is already $100 of profit.

Which ROI is considered good? In bets it is accepted to start from 5% on a distance in 1000bets. If the forecaster gives 5% (or more) at a distance of 1000 bets – then he is very good. However, for a confident game in plus enough and 2-3% at this distance.