Poker ROI
by Simon Dexter Friday, May 16th, 2008Hi Guys.
I read a lot about gauging how you’re doing when it comes to poker’s main aim, winning cash, but is there a simple guide which allows players to keep an eye on their financial progress?
FP, Guildford
FP,
Shrewd poker players measure their performance by considering what is known as their “return on investment”, a phrase familiar to accountants and City types, which you will often see referred to as ROI. Calculating your ROI is very straight forward.
To do so, you should divide your total profits by the aggregate cost of your entry fees and convert it into a percentage.
For instance, imagine you play in a $30+$3 S&G: the aggregate entry cost is $33. Imagine you win the first prize of $135. Your net profit is $102 ($135 - $33). Dividing this figure by 33 and multiplying by 100 gives you your percentage return which in this case is an impressive 309%.
Imagine you play 20 S&G’s for $23 each, your total buy-in is $460. Now let’s assume you’re in the money in half of them and your total amount of prize money is $620, in which case your net profit is $160. If we divide this figure by $460, your ROI is an impressive 34.7%, significantly greater than you would get at your high street bank - or most other places, come to think of it.
A decent ROI for S&G’s is between 20% and 50%, although don’t forget that as your buy-in increases, so the quality of your opponents improves. Nevertheless, achieving 20% of $148 is significantly better than 50% of $25; in other words, there’s no need to stay at the lower levels just to achieve a higher ROI.
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