Return on investment is a term well known by economists. In the field of sports betting, it is also present with an equally great utility. We will explain why you should calculate your ROI at sports betting.

What is ROI?

ROI is an acronym for Return On Investment. It's how you get an idea of how much profit you're making on sports betting, that is, how much excess you're getting on your bets. In other words, it is a index of the profitability of your sports betting.

The term ROI comes from the world of economics. It is a ratio between the amount you bet and the profit you made. Every bettor wants to make a profit on his bets. If you bet money on a bookmaker, you should be able to tell whether or not you got a return on your investment.

There are in fact several tools for evaluating the profitability of your bets. One of them, Bet Analytix, is very useful to get a clear idea about your ROI. The ROI is evaluated over a well-defined period of time and allows you to know if you have chance to win or not, if you should continue or not. It's a real decision support tool. Think of a sports bet as an investment.

ROI is calculated as a percentage. One of its advantages is that it allows you to project for the long term. If you use powerful tools like Bet Analytix for example, you will know, not your chances of winning, but the most accurate assessment of your sports betting journey. However, for a very representative result of your sports betting journey, you need to provide a sample of at least 500 sports betting results. Beyond this sample size, the results are considered to be close enough to reality and "luck" no longer has any influence on the long-term behavior of the balance sheet.

The ROI is therefore a fairly reliable indicator for evaluating the long-term impact of sports betting on your finances.

How is ROI calculated?

In sports betting, ROI is calculated by making the quotient between profits and cumulative bets. We multiply the result for 100 to express it as a percentage.

Let's assume that you have made 10 bets with a combined stake of 400 euros. On these bets, you have made a profit of 100 euros. Your ROI is then (100/400) x100, which makes an ROI of +25%. If we assume that your capital is 1000 euros, then the capital growth is 100/1000, which is 10%. Your capital has grown by 10%. The ROI is therefore quite different from the capital evolution. ROI takes on a negative value when the bet is not profitable. The higher your ROI, the more of a winning bettor you are.

Having a track record of your bets

The ROI calculation requires that you have a balance sheet of your bets, at least over the targeted period. This balance sheet should account for all bets made, wins or losses from them, bets placed, etc.

This faithfully provided information will help calculate your ROI in the most reliable way. The ROI calculation will let you know which sports are most promising for you as a bettor and which ones you have the most losses in. This could lead you to specialize in one type of sport rather than another. Also note that as a good bettor, your ROI should be 5% or higher.

Negative ROI: tips

When you calculate your ROI and end up in the negative, you need to go back to the established balance sheet and analyze it more carefully. If your profitability is not attractive on specific sports or types of bets, don't hesitate to slash red. You should also review how the bets were made, if they made sense. In short, you need to identify any mistakes made and correct them in the future if you continue.

In any case, it is advisable to specialize in the sports and competitions on which you perform better.