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# Roi?

• Bronze
Joined: 19.08.2010
Hey.

With some help of PokerStrat I started my first real money 'career'

I now have 90\$, made by HU SNG's ...
anyways I read something about SharkScope somewhere and i decided to look myself up.

My ROI is 23%, I looked at the FAQ's but I still dont have a great idea of what it is.

Thanks!

Fake4Rake
• 6 replies
• Bronze
Joined: 20.10.2009
How to Calculate Your ROI

Calculating poker ROI is very simple to do using the following formula:

* (\$ Won - Buy In) / Buy In x 100 = ROI %

So using our example of a \$6.50 9-man sit n go, let us assume that our player won first place. What would this player's ROI be? Well, let's plug in the numbers.

* (\$29.25 - \$6.50) / \$6.50 x 100 = 350%

Wow! This is an incredible ROI as it shows that this player has earned 3.5 times his initial investment.

However, this is actually very deceiving. The reason that it is deceiving is because as we mentioned above, poker is a life long session and should not be based on one game. In other words, would you rather have an excellent ROI after one game and be a life long loser or lose one game and be a winning player over the course of your poker career?

I would lose one game and prefer to be a life long winner.

It is important that since poker is a life long session that it is understood that there are variances that will undoubtedly take place. That's why a ROI of 350% is unreasonable as it only shows one game and not a life long session of ups and downs.

For example, let's assume that our player played 1,000 games at the same stakes and won 1st place 77 times, 2nd place 186 times and third place 103 times. What is this player's ROI now?

First, we need to know how much this player won total. To do that, we will do the following:

* 1st Place - 77 x \$29.25 = \$2252.25
* 2nd Place - 186 x \$17.55 = \$3264.30
* 3rd Place - 103 x \$11.70 = \$1205.10
* Total Won = \$6721.65

Now, you need to know how much your investment was:

* 1,000 games x \$6.50/game = \$6,500

To figure out our ROI all we need to do now is plug in our numbers into our handy formula:

* (\$6721.65 - \$6,500) / \$6,500 x 100 = 3.41%

As you can see, that is quite a significant difference from a 350% ROI. This player here has played a standard sample size which should have had several variances, up and down, and has proved to be slightly profitable over time.

So, what is a solid ROI? Well, opinions will vary but the most common answer found will be around 10% or so. It is possible to be much higher, but if a player is looking at an ROI of 20%, 30%, or more, than it may be in their best interest to move up in stakes even if it means dropping the ROI a little bit. This is simply because even though the ROI will drop due to competition and such, there will be so much more money to be made playing at higher stakes. As long as a player is around 5 to 10%, they should be just fine.
• Bronze
Joined: 06.05.2008
Just to add something to the above post -

ROI = Return On Investment

The "Investment" is how much of your hard earned \$ you paid to play the SnGs or MTTs.

The "Return" is how much you profit by playing (winnings less entry fee).

The % is worked out as shown in the earlier post.
• Bronze
Joined: 08.08.2008
Hi Fake4Rake,

unfortunately this is the wrong forum. This forum is for feedback concerning the content that is offered by PokerStrategy.com.

In order to get feedback to strategy questions, you should post your questions and concerns into our Strategy Discussion Forums. There you will find plenty of PokerStrategists that are interest in discussing our content and analyzing your play.

I have moved this thread into the Basic SNG Strategy Discussion Forum for you.

Regards,
Timo
• Bronze
Joined: 19.05.2010
I shouldn't be playing at these stakes,
but I'm playing \$3 6-man SNG at Party because I just hate the turbos (too fast). Over 13 games, I've got a 25% ROI.

Could I move to \$6 even though I only have \$60?
• Bronze
Joined: 31.08.2009
no
• Bronze
Joined: 01.01.2010
have a look at the "spreadsheet for ROi calculations", it explains how many games you need to play before thinking about moving up. with less than 200 games don't even think about it