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Return On Investment

December 18th, 2005 by adioking

Return on Investment (ROI) at poker is very important to any players wanting to be successful. It’s calculated by taking your return (the amount of money that you have won) and dividing it by your investment (the amount of money that you have spent)

I primarily play sit and go tournaments (SNG’S) and I use this calculation to find out how well I am doing and I if it’s profitable for me to play these. For example if you play $20 +2 SNG’s at PartyPoker:

1st) $100
2nd) $60
3rd) $40

Say you play 10 sngs that is a total investment of $220 dollars, say you win two, come second three times, come third once and you didn’t make the money in four.

ROI is worked out like this:

RETURN/BUYIN = ROI

(100×2 + 60×3 + 40×1)/220 = 1.90909090*

So from this example we can see that for every dollar I invested I made $1.9 back, as a percentage this works out that my ROI is 90.9%

This is extremely high due to the small sample of sngs that I have used, in the long run you want to shoot for a 25% ROI. Also you want to play 400/500 sngs before you can see the results balance out.

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