Calculating Sports Betting Return on Investment (ROI)
It is hardly uncommon for betting the world to implement aspects, strategies or in this case performance measures that come from finance or economy and that exactly is the case with Return on Investment or ROI.
This expression has gained plenty of popularity with punters across the globe lately and has in a way become a method to determine or evaluate how successful you are at betting.
What is Return on Investment (ROI)?
ROI is basically the amount of money you won or lost out of your total investment in betting. To put it even simpler, the Return on Investment (ROI) is the amount of money you can expect in return from your original investment.
Return on Investment varies depending on the total wager but it basically helps you evaluate the profit earned from your sports betting system.
ROI results are often expressed as a percentage and they are arguably the most convenient way to analyse the success of a betting system.
How to Use and Calculate ROI for Sports Betting?
ROI can be used in a number of ways and be of different value for players who invest £10 in relation to big-spenders who splash even £500 per game. Investing more money is not a guarantee your ROI will be higher and represent a better value, quite the contrary. Players with £10 wagers can often be much better than high-rollers.
When it comes to ROI it’s all about the profit you made in relation to amount staked so the less money you invest on your wins the better the ROI will be. The simplest way to calculate the ROI you need to divide your profits by the cost of investment.
Profit Made / Amount Staked = ROI
So let’s assume you placed £1,000 over the past ten weeks of betting and the total of ten bets worth £100 each. Let’s also assume that £450 was the total profit made off of those bets. To calculate ROI we will simply divide £450 by £1,000 and get a result of 0.45.
To make ROI easier to read you will want to turn the number into percentage and you’ll doit by multiplying 0.45 by 100 which results in 45%.
What is Considered a Good ROI in Sports Betting?
An amount considered a good ROI in sports betting depends on the time frame you take into consideration.
The above described example of 45% that spans across ten weeks (slightly over three months) on ten bets will be significantly lower over hundreds and thousands of bets for those punters who bet daily or even more than once a day.
Making the ROI over 10% with that number of bets is seen as a challenge. Looking at it from the annual perspective, anything over 5% from approximately 3,000 bets is considered a high ROI which ultimately makes you one of the top sports bettors in the world.
The 5% we are talking about can often mean a different number for anyone’s wallet as it all depends on the initial investment.