PokerStars homepage
  • If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Announcement

Collapse
No announcement yet.

ROI

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • ROI

    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.

  • #2
    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, 05:48 PM.

    Comment


    • #3
      Hey Joe,
      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%.

      Comment


      • #4
        Thanks Dan. Never post in the morning before the second cup of coffee.

        Comment

        Working...
        X

        X Cookies Information

        We have placed cookies on your computer to improve your experience on our website. You can change your cookie settings at any time. Otherwise, we'll assume you're OK to continue.