ROI

[Proline Fiend]

i have a slow mind lol, lets say i win a 1.20 9 man sng, 4.50
can u put those #s in a forumals for me.

[pzhon]

[ QUOTE ]
lets say i win a 1.20 9 man sng, 4.50
can u put those #s in a forumals for me.

[/ QUOTE ]
Your ROI for that tournament would be your profit divided by the buy-in, ($4.50-$1.20)/($1.20) = 370/120 = 3.08 = 308%.

If you had placed 3rd, with a prize of $1.80, then your ROI for that tournament would be ($1.80-$1.20)/$1.20 = 50%.

Your ROI when you lose a tournament is -100%.

It's more common to talk about your average ROI over many tournaments. If you play 10 tournaments, at a total cost of $12, and get a total of $15.30, then your ROI for that set would be ($15.30-$12)/$12 = 27.5%.

[smbruin22]

[ QUOTE ]
[ QUOTE ]
lets say i win a 1.20 9 man sng, 4.50
can u put those #s in a forumals for me.

[/ QUOTE ]
Your ROI for that tournament would be your profit divided by the buy-in, ($4.50-$1.20)/($1.20) = 370/120 = 3.08 = 308%.

[/ QUOTE ]

thought i got 275%. don't have the original in front of me... but your subtraction is wrong in some way. doesn't add up.. i think it's 3.30/1.20 = 2.75 (eye-balled it)

[pzhon]

Yes, I made an arithmetic error in the first calculation. That should have been 275%. Thanks.

[Proline Fiend]

Pzhon, i have a small sample of 40 1.20 sngs.
can u please explain how i do it. Do I do 40 X 1.20 and the get my profit of everything or do each sng seperate and get the average ROI.

[MikeBandy]

[ QUOTE ]
Pzhon, i have a small sample of 40 1.20 sngs. can u please explain how i do it. Do I do 40 X 1.20 and the get my profit of everything or do each sng seperate and get the average ROI.

[/ QUOTE ]

It comes out the same. Do it however it's easiest to set it up on your spreadsheet. I'd do it so that each SNG shows on one line, and the totals and averages show on the bottom.

[Proline Fiend]

[ QUOTE ]

Your ROI for that tournament would be your profit divided by the buy-in, ($4.50-$1.20)/($1.20) = 370/120 = 3.08 = 308%.

[/ QUOTE ]

i to got 275%

[Proline Fiend]

But, i think i get the idea, thank you.

[Poker Clif]

[ QUOTE ]
i have a slow mind lol, lets say i win a 1.20 9 man sng, 4.50
can u put those #s in a forumals for me.

[/ QUOTE ]

I have a much more general question, one of the many things about approaches to poker that has been bugging me for a long time.

Simply put, why is ROI the holy grail of poker?

I understand business and the concept of return on investement. But ultimately, isn't total profit at least as important? I'm not trying to recoup the investment in an expensive punch press for my factory. I'm trying to win as much cash as possible playing poker.

I ask this especially in the context of SNG.

I am grinding my way up, working toward making SNG a viable part-time job. In November 2007 I moved up from $1 to $5, and I hope to be playing $10 before too long.

When I move up from $5 to $10, I can certainly make more per month (I can think about monthly income because of the low variance of 1TT), even if my ROI is less than at $5.

If I'm right so far, then what's the big deal about ROI?