What is ROI ?

Published on 6 February, 2009 | 1 comment from N Todorov

Return on invesment

ROI stands for Return on Investment and sometimes it can be replaced by ROR (Rate of Return), just Return or most popular – yield.  Usually the term ROI is initally and most used in the finance but it is used in a lot more spheres for calculating profit. We are interested how the term is used in betting.

There are 2 options:

The first option is the usual used – Gross Return on Investment: (returns from investment/investment) x 100

Example:

You have put 3 single bets:

1. Zaragoza – Barcelona – 2 at 2.00

2. Liverpool – Barnsley – Under 2.5 goals at 1.50

3. Fiorentiona – Catania – 1 at 1.40

Let`s imagine that you have staked 50 units on the first game, 100 units on the second and 100 units on the third. That is total 250 units staked. Now let`s accept that you win all the 3 bets. The profit will be like this:

1. 50 units x 2.00 = 100 units

2. 100 units x 1.50 = 150 units

3. 100 units x 1.40 = 140 units

The overall profit is 100 + 150 + 140 = 390 units.

So the ROI will be:

(390/250)x100 = 156 %

Net Return on Investment:

[ ( returns - investments ) / investment ] x 100

So the example above will be calculated like this:

[ (390 - 250 ) / 250 ] x 100 = 140 / 250 = 56 %

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Comments

One Response to “What is ROI ?”

  1. Stanislav Kolev on March 6th, 2009 10:02 pm

    You can read more for ROI (ROR) in Wikipedia : Rate of return

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