How to Calculate Sports Betting ROI, Yield and Winning Percentage
Quickly learn how to calculate the most important performance indicators in sports betting
Net profit is not the most important indicator of sports betting success. Instead, professional sports bettors rely on one of two methods to calculate the rate of return in sports betting: Some punters say that betting efficiency should be based on the turnover, while others believe that their initial investment should be the main criteria.
Return on Investment (ROI) and Yield can be relevant performance indicators in sports betting only when they are measured within reasonable periods like six months, one year etc. or on a large sample of bets – preferably 1.000 or more.
This betting guide will teach you how to calculate sports betting ROI, Yield and Winning Percentage, and how to use these formulas to appraise betting strategies and rate tipsters.
Quickly navigate to your desired topic:
- How To Calculate Sports Betting ROI
- How To Calculate Sports Betting Yield
- How To Calculate Winning Percentage in Sports Betting
How to Calculate Sports Betting ROI
A great deal of betting sites use the stock market Return on Capital (ROC) formula to determine – what they call – Return on Investment (ROI) in sports betting. This calculation ignores turnover and only uses your initial bankroll to measure the rates of return.
ROI Calculation Example #1: Let’s presume you started with a bankroll of 100 units and made a profit of 20 units during the first six months.
Your ROI would be (20 / 100) X 100 = 20%
ROI Calculation Example #2: We start from the premise that your initial bankroll was composed of 100 units, and you lost 10 units during the first year.
Your ROI would be (-10 / 100) x 100 = -10%
That’s how easy it is to calculate return on investment in horse racing, football betting, NBA betting and whatnot.
However, ROI is not the only useful performance indicator when betting on sports. In fact, many professional punters believe that determining the yield percentage is the most accurate way to analyse the success of a given betting system or a social media tipster.
How to Calculate Sports Betting Yield
Yield in sports betting is a profit to loss ratio that takes the turnover into account, and not the starting bankroll (as ROI does). Thus, this calculation is based on the sum of all stakes to determine betting efficiency.
Yield Calculation Example #1: Let's presume you started with a bankroll of 100 units and made a profit of 20 units after staking a total of 500 units during the first six months.
Your Yield would be (20 / 500) X 100 = 4%
Yield Calculation Example #2: We start from the premise that your initial bankroll was composed of 100 units, and you have a deficit of 10 units after staking a total of 500 units during the first year.
Your Yield would be (-10 / 500) X 100 = –2%
Now you know how to calculate ROI and Yield in betting.
What is considered a good Yield in sports betting?
It all depends on the number of bets used for the sample. The more you wager, the harder it is to keep a high Yield. As a general rule, anything over 5% Yield from a sample of +1000 bets is rated as excellent in the sports betting realm.
There’s no right or wrong way to conduct investment calculations. Feel free to assess sports betting profitability ratios the way you prefer. Both formulas are easy to calculate.
How to Calculate Winning Percentage in Sports Betting
Even though the Winning Percentage (WPCT) itself has no connection with the profitability of a tipster or with the quality of the predictions he is delivering, many punters are lured by the high hit rates shown on some betting tips sites.
Winning Percentage Calculation Example #1: You won 75 out of 250 bets made.
Your Winning Percentage is: 75 / 250 X 100 = 30%
Winning Percentage Calculation Example #2: You won 20 out of 750 bets made.
Your Winning Percentage is: 75 / 250 X 100 = 2.66%
The lower the average backed odds are, the bigger the Winning Percentage must be for a punter to break even. Here are a few examples you can use as guidance given that you’re using the simple yet incredibly efficient money management plan known as the flat staking method:
- Average odds: 20 – WPCT to Break Even: 83.3%
- Average odds: 50 – WPCT to Break Even: 66.7%
- Average odds: 00 – WPCT to Break Even: 50%
- Average odds: 00 – WPCT to Break Even: 33.3%
- Average odds: 00 – WPCT to Break Even: 20%
It’s time to wrap up this beginner's guide.
Remember that sports betting ROI indicates the return efficiency in relation to the initial bankroll, whereas Yield reveals the average return per bet. Both are very important long-term profitability indicators in sports betting. Winning Performance can be a significant performance metric only when it is associated with the average betting odds.
One last tip: Line shopping can substantially improve the sustainability of any given betting strategy, even if it doesn’t seem so at first glance, hence why registering with multiple betting sites is always a good idea. Don’t forget to bet responsibly and have fun while you’re at it!