What Is Considered A Good ROI In Sports Betting?

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What Is Considered A Good ROI In Sports Betting?

February 08, 2021, by Nedim Maric

ROI In Sports Betting

To be a good bettor, you must manage your investment and calculate your profits or losses well. For this, it is necessary to know what the ROI is and what is considered a good ROI in sports betting.

What Is The ROI In Sports Betting?

The term ROI is an acronym for the expression Return on Investment. ROI tells you how much your bankroll has grown in a given period. It is a relationship between net earnings and initial investment. To calculate ROI in sports betting, you must know these concepts:

Initial Bankroll: The initial budget you used to start betting.
Current Bank: The money you have today in the sportsbook.

To calculate your ROI in sports betting, you will divide your net earnings by the initial bankroll and multiply the result by 100. The result will show you how much you have augmented your bankroll over time. Let's see it through an example:

Suppose we have $ 3,000 as our starting bankroll and invest this amount in a bet with an odd of 1.80. We win the bet, so the sportsbook will show us that our bankroll has risen to $ 5,400. The net profit will be $ 2,400, and the ROI of that bet would be calculated like this:

(2,400 / 3,000) * 100 = 80%

This means that our bankroll increased by 80%.

How Much Is A Good ROI On Sports Betting?

Based on surveys of hundreds of real bettors, an ROI of 5% on 1,000 bets is estimated to be an excellent value. Does a value of 5% seem too little? It is not easy to obtain an ROI greater than 5% in the long term. An ROI of 5% is good if the amount of bets is large enough. Let's test this statement with an example. We will see the wonders of the power of compound interest! Suppose we can achieve an average weekly ROI of 5%, and we place all bets on very similar stakes. If your starting bankroll were $ 400, a 5% ROI would make you end the first week with $ 420 at the end of the week.

Now, perhaps many would say something like this: I've spent the whole week analyzing and placing bets for just $ 20 in profit! That's true, but after getting another 5% ROI in the second week, your bankroll will have grown to $ 441. By the end of the third week, you will have $ 463. After the third month, you will have just under $ 720, and in one year, you will exceed $ 5,000! Not bad, right? That 5% ROI doesn't look so small anymore, does it? You just must have discipline and apply a smart betting strategy. Moreover, what would happen if your ROI were 10% on average?

In sports betting, you can win or lose. You must be aware of it. According to the laws of probability, things tend to equalize after a large number of bets. In that sense, if you have kept a 5% profit after several months, you should be happy! You are earning money! Just stick to your strategy, be consistent, and keep making similar types of bets. The vast majority of punters want short-term results. Shortly after starting, they see that they have not obtained what they were looking for and are discouraged. The right thing to do is to trust the process and be disciplined and patient.

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