How to Calculate ROI in Sports Betting

# How to Calculate ROI in Sports Betting

Understanding your **Return on Investment (ROI)** is crucial for measuring sports betting success. Unlike win rate, which only shows what percentage of bets you won, ROI reveals your actual profitability.

## The ROI Formula

The calculation is straightforward:

```
ROI (%) = ((Total Payout - Total Stake) / Total Stake) × 100
```

### Example Calculation

Let's say you made 100 bets over the past month:

- **Total Amount Staked:** $10,000
- **Total Payout from Wins:** $12,500

**ROI Calculation:**
```
ROI = (($12,500 - $10,000) / $10,000) × 100
ROI = ($2,500 / $10,000) × 100
ROI = 0.25 × 100
ROI = +25%
```

You achieved a **+25% ROI**, meaning you made $25 profit for every $100 wagered.

## What is a Good ROI?

Here's how different ROI levels compare:

### Excellent: +15% or Higher
Professional-level performance. Very difficult to achieve consistently over large sample sizes.

### Good: +5% to +15%
Solid profitable betting. Most successful long-term bettors fall in this range.

### Break-Even: -5% to +5%
Close to breaking even after accounting for variance.

### Poor: Below -5%
Losing money. Strategy needs significant improvement.

## Why ROI Beats Win Rate

Consider these two bettors:

**Bettor A:**
- Win Rate: 60%
- Average odds on wins: 1.50
- ROI: -5% (losing money!)

**Bettor B:**
- Win Rate: 45%
- Average odds on wins: 2.80
- ROI: +12% (profitable!)

Bettor B makes money despite a lower win rate because they find value bets with higher odds.

## Tips to Improve Your ROI

### 1. Shop for the Best Odds
Even 0.10 difference in odds compounds significantly over hundreds of bets. Use multiple sportsbooks.

### 2. Specialize
Focus on 1-2 sports rather than betting on everything. Specialization builds expertise.

### 3. Track Everything
Use tools like ROIRank to automatically calculate your ROI and identify patterns.

### 4. Bankroll Management
Never bet more than 1-5% of your bankroll on a single wager.

### 5. Value Over Volume
Quality beats quantity. One high-value bet is worth more than ten mediocre picks.

## Start Tracking Your ROI Today

ROIRank automatically calculates your ROI across all your predictions. [Sign up free](/auth/signup) to get started.