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roi and rake

    • maniac
      maniac
      Gold
      Joined: 29.03.2006 Posts: 6,641
      Hi,

      how do I calculate if a limit is profitable or not? And how do I know how much roi I have to play to beat it. For example, stars 9man turbos 1,50$ its 18c rake. According to that it's 8,33% rake. Do I have to play a roi like 8,33% to be break even? Because if you look at the higher stakes the rake percentage increases. For a 3,50$ sng its 8,9% and 11,1% for 7$ sng's. Is this estimation this simple? If I play at the 1,50$ sng's a roi of 20%. Can I calculate my estimated roi like this? 20-8,33=11,77%. So if I multiplicate 11,77% with the sngs I might play let's say 1000. My winnings should be like (1,50/11,77) *1000= 128,2$. Is that correct?

      Greets

      maniac
  • 8 replies
    • SDK1987
      SDK1987
      Moderator
      Moderator
      Joined: 12.11.2008 Posts: 37,800
      It’s time for a calculation check. 18/150*100% is 12% rake. Not sure you have calculated it, but I think that is most likely the wrong method.

      If you calculate the ROI every ROI that’s higher than 0% is profitable, because you already count the rake in your calculation. If you invest $1.000 and you had a profit of $100 you ROI would be 10%. Bankroll would be $1.100 in this simple example.

      Hopefully helps this a little bit, but if you have more questions don’t hesitate to ask them.

      Cheers,
      SDK1987
    • maniac
      maniac
      Gold
      Joined: 29.03.2006 Posts: 6,641
      hm. I search for the equation to calculate if a limit is profitable due to the rake. For example, if you play the 1,50$ sng's you will pay 18c rake per tourney. Because 1,50$ * 9 players is 13,5$. The prize pool is 11,88$ which will, of course, split into 50/30/20. According to that 13,5$-11,88$=1.62% rake at all. 1,62% / 9 players = 0,18 rake per player. 1,50$ buyin / 0,18 rake = 8,3%. How much do I have to win until i beat the rake? 8,3%? According to that how much roi do I need to beat the rake?

      ROI = (Profit / Investment) * 100

      For example

      ROI = 8,3%
      Investment = 1,50%

      Profit = (ROI * Investment )/100

      Profit = (8,3 * 1,5)/100 = 0.125

      According to that. I understand what you mend by any roi is profitable even if its marginal. But this doesn't answer my question how do I calculate If a Limit got or a Poker site takes too much rake. I just want to know how do I calculate if a Limit is beatable or not. I sure that the less rake I pay the more profitable is it for me. ( please to count in the player skill. In that cases, it's a different story. I am aware of that.

      Thanks a lot for your answer. I just forgot that stuff and can´t find any old notes on this matter.


      Cheers,
      maniac
    • pkrrrr
      pkrrrr
      Silver
      Joined: 20.04.2011 Posts: 3,043
      Hi,
      Originally posted by maniac
      1,50$ buyin / 0,18 rake = 8,3%.
      it's 0,18/1,50 = 0,12 (or 12% rake)
    • maniac
      maniac
      Gold
      Joined: 29.03.2006 Posts: 6,641
      but I have still the question how much do I have to win to beat the 12% rake. Do I need a 12% roi to be break even?

      greets

      maniac
    • pkrrrr
      pkrrrr
      Silver
      Joined: 20.04.2011 Posts: 3,043
      Originally posted by maniac
      but I have still the question how much do I have to win to beat the 12% rake. Do I need a 12% roi to be break even?
      To break even you need a 0% ROI (with 0% ROI you beat at the same time your opponents and the rake).
    • arthurbentley
      arthurbentley
      Silver
      Joined: 12.10.2010 Posts: 264
      Dude don't bother playing poker if you are unable to calculate simple percentages. Your bank balance will thank you for it. Sorry for being harsh but it is best to be cruel to be kind.
    • angalius
      angalius
      Bronze
      Joined: 10.11.2011 Posts: 465
      Thats how you learn, by asking questions
    • maniac
      maniac
      Gold
      Joined: 29.03.2006 Posts: 6,641
      I am aware that any kind of roi is profitable. I just want to know how much how much you have to win to beat the rake. I may used the word roi in my early posts in a wrong way. But as you may see this not my point of interest. I am asking because there is a point in a rake structure in which you cant be a winning player if the rake is simply too high. For example, you could not beat something like 50% rake and so on. According to that, there should be a point which you can calculate if the rake for a limit is too high because you cant win this much long term.


      Cheers

      maniac