Return On Investment (ROI) + Calculator - Ultimate Betting Guide
What Is Return On Investment (ROI)?
Return On Investment (ROI as an abbreviation), is the ratio of money gained or lost on an investment relative to the amount of money invested. It is an important measure in order to determine whether your investment has been successful or not. ROI is always calculated for a predetermined period, whether it be daily, weekly, monthly or even yearly.
How To Calculate Return On Investment
To calculate ROI you need to know the following information:
- Total Profit/Loss.
- Total Stakes.
The calculation is then as follows:
- ROI = Profit Or Loss / Total Investment (Stakes) * 100
For example, if your profit was £100 and you had staked a total of £1,000, then the calculation would be:
- ROI = £100 / £1,000 * 100 = 10%
Return On Investment (ROI) Calculator
Use our free and easy ROI calculator that automatically does the math for you.
What Is Considered A Good ROI In Sports Betting?
Making a profit in gambling is extremely difficult so anything positive can be seen as a success. Many people have varying opinions on what is actually a good ROI but generally, for those who bet long term, an ROI that fluctuates between 2% and 10% is considered good. Anything above that is very good.
Horse racing bettors may see a higher ROI than those in other markets however they pay for that possibility with a much higher risk.
In summary, ROI is perhaps the best way to analyse the success of your investment by looking at the total profit or loss in relation to your total investment as a percentage. It it recommended that you calculate it regularly as part of your betting strategy so you can keep track of how well you are doing.