EV formula

[Vertical Taco]

Hello,

Currently when calculating EV based on equity I use the following formula:

EV = [(1 - equity in the pot) x (bet to call)] + [(equity in the pot) x (pot size)]

Purely out of curiosity, I was wondering how this formula was devised,

Keep it simple [img]/images/graemlins/wink.gif[/img]

[AaronBrown]

This formula doesn't make sense to me. How are you using it?

[BritNewbie]

I think I can see how this formula was derived:

Write your pot equity as a decimal (ie. 20% equity would be written as 0.2)

Then (1 - pot equity) represents the probability of not winning the pot. If you multiply that by the size of the current bet, that's how much of the current bet you're going to lose.

At the same time, pot equity X pot size is how much of the pot you stand to win.

Added together those two figures give you the E.V.

I hope that's right.