ROI Calculation

[AJG]

How exactly is ROI calculated in HEM.
I was doing this manually before recently using HEM, and the figures are different...

I use: ROI = (Winnings - Buyins) / Buyins * 100
In this case I cite of 1 particular tournament from an online league, I get 6.83 and HEM say 106.8%???

Winnings: $102.24
Games: 29
Buyin: $3 + 30c

It seems HEM is adding 100???

[netsrak]

I'll forward it to Fabio for an answer.

[fozzy71]

I am a tourney noob, but I am pretty adept at math (or at least I was 20 years ago in High-School), so hopefully I am explaining this right. This is my laymen's understanding of ROI in HM.


You should not be multiplying your divisor (BuyIns) by 100


The return on investment formula:

           (Gain Form Investment - Cost of Investment)
ROI = ---------------------------------------------------------
                          Cost of Investment

Your cost of investment was $95.70

That money is gone, and no longer your own.

Your return on that investment was $102.24

You got your entire investment back (100%) + the profits, for an ROI of >100%

[AJG]

Well, thanks for the reply, but I will correct you on 1 thing. The formula i cited doesn't multiply the divisor, it multiplies the result of the division (multiplication and division have the same precedence, hence are simple performed left to right)
ie:

winnings - buyins
-----------------  x 100
     buyins

and you need to multiply by 100 to get a % figure...


OK, so by HEM ROI anythin < 100 is loosing money?

ROI should be standardised across all poker software imo...
Yet looking atound i see a number of formulae for it.

[noap_]

I'd like to know how ROI is calculated in HM. Do you compute ROI with the real $$$, or do you compute ROI in buyins? E.g. I've paid 5 buyins, took 2 first places, other 3 SNGs out of the money. So ROI in this case would be (10-5)/5=100%

It differs whether $$$ or buyins are used, if you play different buyins simultaniously (as you haven't fixed it yet, that HM recognizes what buyin you are currently playing at. It takes all SNGs as $11 SNGs)

[AJG]

Yes, that is the best I can figure HEM calculated ROI that anything < 100 is losing.
But the figures you cite should show an ROI of 200% as you have got back twice your investment.

in the above formula buyins is the total amount spens on buyining into tournaments, so if you have played 5 SnGs with a total buyin af $1 each, then yes this would be 5.
Everything is in total dollars...
Seems the real formula HEM uses is winnings / buyins x 100...

the $11 figure for buyins only refers to one site, which doesnt record the amount in the HH files, but other sites (PS, Tilt etc) do, so you dont need to enter the amount for those, although you can filter some out of the report.

Overall ROI is irrespective of buyin level if you buyin at diferent levels, it just totals your winnings, and you buyins and divides to two...

Hope this helps...

[noap_]

I forgot to mention that I'm playing at a Casino in the ongame network, where HM doesn't recognize the different buyins.

[netsrak]

I'll forward it to Fabio again...

[DocM]

I've got an question about ROI calculation as well. It's a more general question. But since ya'll are such good at math, i think at least one of you probably knows this one:

If i want to know what my average ROI % per game should be if i want to make x amount of money with x amount of games to play. Lets say:

• I play: $2.25 stakes STTSNG;
• i want to play 600 games;
• I want to make a profit of $750.

Is it elegible to say:

Over 600 $2.25 games i invest $1350 (2.25*600). So that is the total investment. What i want to make is $750,00. So how do we get that? -$1350 + ??payback?? = $750. Well: ($750--$1350)=$2100 payback. So we got to make a profit of $2100 in total. Here is the equasion:

ROI = [ ($2100 – $1350)/$1350)]*100 = 55%.
ROI = 55%

Only thing is that an ROI of 55% would be insane and fairly impossible imo lol

Thanks in advance

[AJG]

Your math is correct, but in HEM this would show as ROI = 155%