ROI and Yield are two very important ways to work out your betting profit and this will be an article on how ROI and Yield works.
ROI (Return of Investment)
ROI determines of how profitable your investments are which would be on how profitable the bets that you previously made have been. ROI is calculated by the amount you’ve invested and the income that you received. When it comes to sports betting, ROI determines how much your made bets increase or decrease from your initial amount in the bankroll and your bankroll is the specific amount of money that you’ve have inside your betting account.
Example: If you were to were to bet let’s say £500 on a specific sports tournament then that would be your bankroll for the whole tournament. So let’s say if within the first 3 days you make extra £100 you then would have the bankroll of £600. To work out the ROI you need to divide the growth (£100) by the initial investment which would be £500 and then when you work that out you’d get your ROI percentage which would be 2% and if your ROI has a negative percentage then that would mean you lost more money than you’ve won from your initial bank roll.
There are a couple of things that could mess with your ROI:
- The correlation between the bet amount and bank balance
- The amounts of bets in a specific time
To even this out you need to make sure to note the time period that you made your investments in and how many bets you made during it. This should help you to get your ROI results correctly.
Also you can use our ROI calculator to be sure that your calculation is correct.
Yield measures how profitable certain bets are. To work this one out you need to divide the total amount of profit by the amount of money that you’ve spent in betting and that’ll give you your yield percentage. This sort of calculation should take over a longer period of time than ROI needs because you need a high amounts of bets to be able to properly calculate your Yield percentage.
Example: So if you make a turnover of £20000 and exclude the £300 profit you’d have to work this out by dividing 300 by 20000 and then timing the answer to that by 100 which would work out your yield percentage so in this case you’d have yielded 1.5%.
If your Yield percentage is negative then you’re losing more money than you’re winning.
To summarise, it is better to use ROI when you are betting in smaller amounts and have less money. But if you have a massive amounts of money then in that case it is better to use Yield to work out your profit.