What Is ROI in Betting? Why ROI is Important?

ROI (Return on Investment) is a percentage that measures betting profit or loss of a bettor or tipster. The value can swing either way – positive or negative. If it’s in the positive zone, congratulations, your bets are paying off; if negative, well, that’s a losing streak.

Pro Tip: To measure your ROI accurately, you need at least 500–1000 bets.

Consider yourself a top-tier bettor if your ROI is 5% or more.

Check out the screenshot above. It shows a tipster’s ROI in betting. The higher the %, the better the tipster. 

Although the ROI of 8.7% looks impressive, but it is based on only 372 bets, which is too small to draw any meaningful conclusions.  

How to Calculate ROI in Sports Betting

It’s easy. Just follow these steps:

Step 1: Find your net profit (or loss) from your bets. This is the difference between your winnings and your losses.

Step 2: Divide your net profit (or loss) by your total stake. This is the amount of money you bet in total.

Step 3: Multiply the result by 100. This is your ROI as a percentage.

You can also use this formula:

ROI = (Net Profit / Total Bets) x 100

Where:

• Net Profit = Winnings – Losses
• Total Bets = Bets x Stake

Here are some examples in different scenarios:

Note: If you have a net loss, use a negative sign for the net profit.

What Are The Benefits of ROI?

ROI looks simple, but some people argue it’s not that useful. They think it doesn’t capture all the factors that matter in betting. Well, they are wrong. It’s a powerful indicator of your betting performance – and here’s why.

The key thing to remember is that ROI improves in accuracy as you place more bets. The number of bets you make is more important than the odds you get. So, don’t be fooled by someone who claims to have a 25-30% ROI after only 10 bets. They might have just gotten lucky. What you should look for is someone who has a consistent ROI over 100+ bets – they are long-term winners. That’s how you know they have the skills to beat the bookies. 

ROI: What’s a Good Value?

The rule of thumb is that you need at least a 5% ROI over 1000 bets to be a reliable tipster. That means you make 5% profit for every dollar you bet. That’s how you show the bookies who’s boss. Even 1-2% ROI is decent, but not impressive.