Your sports betting ROI (return on investment) measures how much profit you make compared to the money you’ve wagered. It gives you a clear picture of whether your betting strategy is actually working. If you’re serious about making smarter bets, understanding ROI is essential.
A high win rate is great but doesn’t always mean you’re profitable, and a few big wins don’t guarantee long-term success. ROI helps you track performance over time, spot weaknesses in your betting approach, and adjust your strategy to maximize returns. Even a small improvement in ROI can make a big difference in your overall results.
This guide breaks down what ROI is, how to calculate it, and why it matters in sports betting. You’ll also find real examples to show how different strategies impact ROI, helping you make more informed bets and manage your bankroll like a pro.
How does ROI in Betting Work?
ROI in betting is the percentage of expected profit or loss from a bet. An ROI calculation won’t predict the outcome of any bet. ROI is all about numbers. However, it will give you a good idea of how a particular wager would fare over the long run.
You can also run the figures on the total outcomes of many bets to calculate your ROI.
What you consider a good ROI for sports betting depends, of course, on your approach. Betting for the fun of it is one thing; you are willing to accept some loss just for the entertainment value.
Long Term Losses
Since sportsbooks calculate odds to make money, that money has to come from somewhere, and that’s from our collective pockets. Therefore, many casual sports bettors are willing to accept about a 10% loss over the long term. If you are losing more, maybe blackjack is your game.
But, since you want to beat the book, you want to formulate the best way to get the most bang for your buck.
How to Calculate ROI in Betting?
There are variables involved in calculating sports betting ROI.
You plug in:
- The bet amount
- Your perceived chances of winning
- The odds
The calculation then gives you:
- Implied probability derived directly from the odds
- Winnings, according to all three variables
- ROI percentage
You can use a sports betting ROI calculator to do all this, but there are also specific formulas for the calculations. Here’s how a calculator’s formulas work:
Implied Probability
Here’s an example with moneyline odds. A minus figure suggests that your chances of winning are better than 50%. A plus figure, lower than 50%.
For more detailed information, you can read our guide on implied probability, but the formula looks like this:
Implied Probability = (-1*(Odds)) / (-1(Odds) + 100)
If you plug in a moneyline of -110, it looks like this:
(-1*(-110)) / (-1(-110) + 100) = .524 or 52.4%
That means a -110 moneyline gives you a 52.4% chance of winning.
Winnings
This formula requires decimal odds, so the conversion formula is:
Decimal Odds = 100 /(-1 * Odds) + 1 (for negative odds)
A -110 moneyline would be 1.9091 in decimal odds.
And use this formula for winnings:
Winnings = Decimal Odds * Chances of Winning / 100 * Bet
With a $100 bet, a -110 moneyline, and a perceived chance of 60%, we have:
$114.60 = 1.9091 * 60% / 100 * $100
ROI
The formula here requires input from the other calculations.
ROI = Winnings / Bet – 1
For our example, the calculation would be:
.146 = $114.60 / 100 – 1 or a 14.6% ROI.
ROI for Total of Outcomes
If you want to calculate your return on investment after a series of bets or at the end of a season, the formula is as follows:
Profit = (Wager Returned – Amount Wagered).
If you wagered a total of $1,000 in bets during a season and you end the season with a gross return of $1,123, the ROI calculation looks like this:
($1123-$1000) / $1000 * 100% = .123 or a 12.3% ROI.
These are all excellent ROIs. With that percentage, you are getting more than your money back and doing better than most gamblers.
What is a Good ROI in Sports Betting?
Again, a good ROI in sports betting is subjective and can vary depending on an individual’s goals and expectations, but a common benchmark in the industry is an ROI of around 5%.
While this ROI may not be as high as some other forms of investment, it is still considered a good return. It’s important to note that a 5% ROI in sports betting does not guarantee consistent profits and that the results can vary greatly from one betting session to another.
Additionally, factors such as the size of your bets, the frequency of your bets, and the volatility of the sports market can also impact your ROI. Therefore, it’s important to have realistic expectations and to understand that even a 5% ROI may not be sustainable in the long run.
Bet Smarter: Track Your ROI and Improve Your Strategy
Winning a few bets feels good, but real success in sports betting comes from long-term profitability. That’s why tracking your ROI at sportsbooks matters. It tells you if your betting strategy is actually working or if you’re just treading water. Even a high win rate means nothing if the odds aren’t in your favor.
Tracking your ROI helps you make better decisions, spot patterns, and adjust your approach. Maybe you’re winning favorites but losing on parlays, or maybe your underdog picks have been more profitable than you realized. Understanding your numbers is the first step to making better bets.
Sports betting isn’t just about luck—it’s about strategy. The best bettors don’t just focus on picking winners; they focus on maximizing returns. Start tracking your ROI, refine your approach, and give yourself an edge. Over time, small improvements in ROI can turn into big profits.
Learn more about best practices for sports betting from our betting guides.
FAQ
A few answers to common questions our readers have about ROI.
How do you maximize ROI in sports betting?
To maximize your ROI in sports betting, it is important to follow a disciplined betting strategy, be selective with your bets, and have a solid understanding of the sports and teams you are betting on.
Are there tools available to help me calculate my ROI in sports betting
Yes, there are many tools available to help you calculate your ROI in sports betting.
Some popular options include spreadsheets, betting tracking apps, and an online odds calculator. These tools can help you figure out the math, keep track of your betting activity, and calculate your ROI more easily and accurately.
What are the factors that can affect ROI in sports betting?
Several factors can affect your ROI in sports betting, including the odds offered by the sportsbooks, your betting strategy, and the outcome of the games you bet on.
About the Author
Alonzo Solano
The Boss of Betting, Editor-in-Chief & Sports Analyst
Alonzo Solano is an author, sports analyst, Editor in Chief of BossofBetting.com, and host of the 'NFL Latino TV' podcast.
Outside of family, his biggest passion is NFL football. Perhaps he is best known for his podcast 'NFL Latino TV,' where he shares his analysis and perspectives on the game with a worldwide Spanish-speaking audience.
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