When we refer to the acronym ROI what we mean is Return On Investment. Taking into account the ROI in poker implies the possibility of obtaining profits or losses among a series of objectives that have been previously established. It is the measure used to compare the profit in relation to the investment that has been made.
As a general rule, the term ROI is mainly used in the world of marketing and advertising. In order to obtain real results, it can only be calculated at the end of the campaign being analyzed. That campaign can be through traditional media or through social networks. The main objective of the analysis is not to analyze the economic benefit, but it is especially focused on seeing the scope that the campaign has had.
But that is when we talk about marketing campaigns. In the world of poker, things are different. The term ROI is used to elaborate a game strategy. In that strategy an initial investment is included, which will be analyzed to see if it has really paid off or not. We can say that ROI in poker is the formula used by poker tournament players to see if the strategy they are using is really effective or not. In case the result shows that the strategy followed is not the right one, it is necessary to modify it so that the next time the expected results can be achieved.
Now that we know what ROI is in the world of poker, it’s time to analyze in depth the formula ROI in poker. Therefore, the aim of the next block of this article is to learn how to calculate the formula. Let’s start!
How to calculate ROI in poker
Before getting into the subject it is important to understand that the initial formula is bb/100, but that formula is not always effective. With this formula we will be able to know the number of blinds that we win having as a start 100 hands. The problem with the initial formula is that we can have a positive success rate, but because of the increase in the level of the blinds’ bets the economic result can be negative. Remember that the blinds are the forced bets made by the players to our left.
To make a more professional calculation, it is recommended to follow the following formula.
Formula ROI poker 1
As you can see, the formula is really simple. Its use is especially recommended in multi table tournaments (MTT) and Sit&Go tournaments.
(Gross Profit/ Amount spent on purchases) x 100= ROI
What we are looking for when making this formula is to know our percentage of net profits. When we obtain the data, we can see if these profits are positive or negative. But to understand it better, we are going to show you an example that will be of great help.
Let’s suppose that we have played in a Sit&Go tournament and that we have participated in 150 tournaments with an investment of 2 euros in each one. After finishing, we realize that the gross profit has been 400 euros. In that case, we would have to use the ROI formula to see the final result, remembering that participation in the 150 tournaments worth 2 euros makes a final figure of 300.
If what we want is to know the result as a percentage, the operation is very simple. The result obtained will have to be multiplied by 100, that is, 1.33*100= 133%. As the data is higher than 100%, we can conclude that in this case the ROI result is positive with respect to the initial investment.
Formula ROI poker 2
If the above formula is too simple for you and you are looking for something more complete, then you are interested in calculating it in this other way. It is simple, but it offers us a more complete result:
[(Tournament winnings – buy-in tournament)/ buy-in tournament] x 100
The positive point of this formula is that it includes the buy in, also known as buyin. In poker it is the equivalent to the economic amount that the player needs to enter a poker game. But to make it easier for you to understand again let’s take a simple example.
Let’s suppose that we play a total of 300 games with a value of 3 euros + 0.50 euros buyin. After finishing, we realize that the amount we have won is 1100 euros. With this data, we could say that the formula would be like this: [(1100-1050)/1050]x100= 4.76% ROI. As you can see, again we are talking about a positive ROI, that is, the strategy we have used has been good.
How can we improve our ROI?
Even when the result is positive, we always have to look for formulas to improve the ROI and, thus, obtain a superior benefit from our games.
We can choose to participate in poker networks that have lower rates. That will make the investment lower for each game and, consequently, with the same budget we can opt for a higher number of games. By participating in more games, the probability of increasing the benefits will be higher.
But the ROI formula will not make us win or lose money, but in poker it is only a strategy that helps us to see if we have obtained a positive data or not in terms of achievements. In the world of poker, the ROI is involved by a great amount of variables. For that reason, it is recommended to keep a daily control to see if the strategy is really paying off or not. Things can change radically from one day to the next.