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 Originally Posted by tuuk2
ROI = Return on Investment. If you played 10 tourneys at $10 and won $50, your ROI = 50% (winnings/buy-ins = ROI). At the low stakes, 20% is considered a pretty good ROI and it goes down from there as you move up in stakes.
Found this somewhere, bit more ABC:
To figure out your ROI, you will only need to know a few numbers. You need to know how much money you have won and how much money you have had to invest. For our examples below we will be using a single table sit n go with a $20.50 buy in and first place earning $100, 2nd place earning $60, and third place earning $40. If you were to invest $20.50 to play in this game and you won the first place prize, what would your ROI be?
To figure out your ROI, you would use this equation: $ Won-$ Buy In / $ Buy In X 100 = ROI
To utilize our equation, let's plug in our numbers: $100-$20.50 / $20.50 X 100 = 388% ROI
To give you an idea of the difference, this is what 3rd place's ROI be: $40-$20.50/$20.50 X 100 = 95%
First place's ROI would tell you that you almost won 4 times what you invested while 3rd place barely doubles their original buy in. While these numbers look great, this is only one game and is very inaccurate. For example, what if you played 125 games and only won 3 of them while losing the other 122; what would your ROI be then?
To figure this out, we are using the same example as above. You will want to figure out how much you would have won and the total amount you have bought in for. Provided below are the answers:
125 games X $20.50 = $2562.50 Invested
Winning 3 games at $100 per win = $300
Let's plug those numbers in and see what our ROI is: $300-$2562.50/$2562.50 X 100 = -88% ROI
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