ROI (return of investment)

Three cardsAnyone playing poker tournaments (MTTs & SNGs) will have a specific return of investment, ROI. It's good to know you ROI as you will when know how much you can expect to win in a certain number of games, and you can also compare between different poker forms and find out there your profit is the best.

ROI in poker are used then you are playing tournaments, not cash games (in cash games it's about win rate and how much you earn by hour). Let's look at some examples concerning SNG heads up.

Let's say you playing $50+$2.5 heads up and thinking about moving up to the next limit, $100+5. Here we compare your profit in both cases.

Buy-in $50+2.5 x 10 matches = $520.50
Result 7/10 won = $700 in money > net win: $170.50
ROI 170.50/520.50 = 33,3% ROI

Buy-in $100+5 x 10 matches = $1050
Result6/10 won = $1200 in money > net win: $150
ROI 150/1200 = 12,5% ROI

In the first example, we can see that you make more money playing $50+$5 supposing the different winnings. However 7/10 it's not very realistic and the difference to the next limit will probably be lesser.

So let's look at another example.

Buy-in $50+2.5 x 10 matches = $520.50
Result 6,5/10 won = $650 in money > net win: $120.50
ROI 140.50/520.50 = ca 28% ROI

Buy-in $100+5 x 10 matches = $1050
Result 6,2/10 won = $1240 in money > net win: $190
ROI 190/1240 = ca 16% ROI

In the second example, we see that you winning more money playing $100+$5 supposing the performance giving. And as you also can see the ROI in poker doesn't need to be very good when you playing on higher limits because you will win pretty much money even with a relative small return of investment in percentage.

These kinds of calculations can also be made for comparing SNGs with MTTs and other situations.

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