ROI (return of investment)
When you playing poker you will have a specific return of investment, ROI. It's good to know you ROI because you will when know how much you can expect to win in a certain number of games and you can then compare between different poker forms and see there your profit is the best.
ROI in poker are used then you are playing tournaments, not cash games (when it's abot hourly rate). Let's look at some examples concerning SNG heads up.
Lets say you playing $50+2.5 heads up and thinking about moving up to the next limit, $100+5. Here we compare your profit in both cases.
Buy-in $50+2.5 x 10 matches = $520.50
Result 7/10 won = $700 in money > net: $170.50
ROI 170.50/520.50 = 33,3% ROI
Buy-in $100+5 x 10 matches = $1050
Result6/10 won = $1200 in money > net: $150
ROI 150/1200 = 12,5% ROI
In the first example we can see that you make more money playing $50+5 supposing the different winnings. But 7/10 it's not very realistic and the difference to the next limit will probably be lesser.
So let's look at another example.
Buy-in $50+2.5 x 10 matches = $520.50
Result6,5/10 won = $650 in money > net: $120.50
ROI 140.50/520.50 = ca 28% ROI
Buy-in $100+5 x 10 matches = $1050
Result6,2/10 won = $1240 in money > net: $190
ROI 190/1240 = ca 16% ROI
In the second example we see that you win more money playing $100+5 supposing the performance used here. And as you also can see the ROI in poker doesn't need to be very good when you playing on higher limits because you will win pretty much money even with a relative small return of investment.
These kinds of comparing can also
made for comparing SNGs with MTTs and so on.
