In the game of betting, many terms are borrowed from the financial sector, as betting is to some extent correlated with investments. The capper chooses the most profitable events, in his opinion, follows specific strategies, treats the occupation professionally, and therefore expects to eventually increase his capital. ROI index is one of the key indicators that allows a capper to calculate the profitability of his bets.

## What is ROI in betting?

First, let’s deal with the decoding of this abbreviation. It came to the financial sphere from the English language, like most business terms. ROI is a return on investment. In other words, the index indicates the profit received by the investor. As for betting, this indicator is necessary to account for the result of the bets made. The capper receives the value and then determines whether to follow the chosen strategy or to make adjustments to the chosen methodology.

In business and financial analytics, there are several formulas for calculating the index, but in the betting game it is better not to complicate this process, so cappers are guided by simple formulas.

## How to calculate ROI?

The indicator of “return on investment” differs from the “net profit” of the bettor, so the theory that says that the effectiveness of the strategy can be calculated by subtracting the current balance from the initial deposit is erroneous. In addition, it is important to take into account the conditions for making a profit. For example, the capper initially bet $10, but on events with higher odds, and his winnings amounted to $70. Then the bettor preferred a cautious approach, and in order to get the next $70, 20 bets were made for a total of $200 with minimum odds.

In both cases, the result is the same, but the initial investment, risks, profit period, etc. differ. It is ROI that evaluates the effectiveness of a particular capper.

## Formula and example of ROI calculation

The formula for estimating the return on your investment looks like this:

- ROI = P / S * 100%.

In this formula, ROI is the return on investment index, P is the capper’s net profit (total profit minus initial investment), and S is the sum of all bets made by the bettor. Let’s consider the calculation of the indicator from the example.

The capper chose a strategy and made 20 bets that correspond to a specific methodology. The amount of each bet was $10. As a result, the total investment amounted to $200. Profitable were 12 bets, which brought the predictor $ 108 (net profit was only $ 28, given that the remaining 8 bets did not pass). As a result, ROI = 28/200 * 100%. The ROI for this example is 14%, and this is a high success rate, so the capper concludes to continue to follow the chosen strategy.

There is another formula for determining ROI, which takes into account the average size of the capper’s bet:

- P/(Sa*St)

In this formula: P is the profit received, Sa is the average volume of one bet, and St is the total number of bets made. Let’s say a player made 20 bets, the average size of which is 2 dollars. He received a profit of $3 (net income) on them. ROI in this case is equal to 7.5%. The formula differs from the previous one in that it allows you to calculate the approximate average bet size, especially when it comes to long distances.

## Principles of ROI calculation

Beginners are often guided by the forecasts of experienced cappers, whose success helps inexperienced players to increase their skill and be in the black. ROI is considered to be the determining factor when choosing a predictor (the index is useful for both the capper and other bettors, if they do not make their own analytics, but choose ready-made forecasts). Experts recommend paying attention to the following indicators:

The distance on which the ROI is based. For example, the efficiency of a capper who has an ROI of 8% at a distance of 300 bets is considered higher than the index of 14% at 10 bets.

Permissible boundaries. ROI indicators within 4-8% are considered positive. And here you should not change the strategy.

Buying forecasts. If a betting player prefers not to make his own forecasts, but to choose ready-made (paid) ones, then ROI is of key importance. Even an indicator of +2-3% is considered good, but provided that the distance includes more than 1000 bets.