Home / Community / Forum / Support Area / Poker News /

ROI

Old
Question
ROI - Tue May 03, 2011, 06:58 AM
(#1)
andrei17731's Avatar
Since: Aug 2010
Posts: 160
ROI is return on investment but what does that mean? How do I calculate it? what information should this be giving me? How should I act based on this information? Please provide a general explanation as to what it is.
 
Old
Default
Tue May 03, 2011, 07:35 AM
(#2)
TrumpinJoe's Avatar
Since: Jun 2010
Posts: 4,557
Say you enter a $1.10 event and win $4.40. You made a net gain of $3.30. ROI = Net Gain or Loss / Investment so in this case the ROI = 3.30 / 1.10 * 100 = 300%.

ROI is best used as a long-term metric. So after 100 of these events you have invested $110. If your net gain is $25 your ROI will be 22.7%. If instead you had a net loss of $25 it would be -22.7%.

Last edited by TrumpinJoe; Tue May 03, 2011 at 10:48 AM..
 
Old
Default
Tue May 03, 2011, 09:37 AM
(#3)
!!!111Dan's Avatar
Since: Jul 2010
Posts: 3,290
Hey Joe,
Quote:
Originally Posted by TrumpinJoe View Post
Say you enter a $1.10 event and win $4.40. You made a net gain of $3.30. ROI = Net Gain or Loss / Investment so in this case the ROI = 2.30 / 1.10 * 100 = 300%. I think you meant this to be 3.30 here...roi calculation is still correct ..300percent.

ROI is best used as a long-term metric. So after 100 of these events you have invested $110. If your net gain is $25 your ROI will be 22.7%. If instead you had a net loss of $25 it would be -22.7%.
 
Old
Default
Tue May 03, 2011, 11:33 AM
(#4)
TrumpinJoe's Avatar
Since: Jun 2010
Posts: 4,557
Thanks Dan. Never post in the morning before the second cup of coffee.
 

Getting PokerStars is easy: download and install the PokerStars game software, create your free player account, and validate your email address. Clicking on the download poker button will lead to the installation of compatible poker software on your PC of 51.7 MB, which will enable you to register and play poker on the PokerStars platform. To uninstall PokerStars use the Windows uninstaller: click Start > Control Panel and then select Add or Remove programs > Select PokerStars and click Uninstall or Remove.

Copyright (c) PokerSchoolOnline.com. All rights reserved, Rational Group, Douglas Bay Complex, King Edward Road, Onchan, Isle of Man, IM3 1DZ. You can email us on support@pokerschoolonline.com