Betting Math

ROI (Return on Investment)

Total profit divided by total amount wagered, expressed as a percentage. The standard measure of betting profitability.

Also known as: return on investment, yield

Definition

ROI (return on investment) in betting measures your profit relative to total amount wagered. A 5% ROI means you profit $5 for every $100 wagered over time.

ROI = (total profit / total wagered) × 100

Professional sports bettors typically achieve 2-7% long-term ROI. Prediction market ROI can be higher due to more frequent market inefficiencies but is limited by lower volume and longer resolution times.

ROI should be measured over large sample sizes (500+ bets minimum) to be statistically meaningful. Short-term ROI is dominated by variance.

Formula

ROI = (totalProfit / totalWagered) × 100%

Worked Example

$10,000 wagered over a season, $450 net profit. ROI = 450/10000 × 100 = 4.5%.

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