ROI: Return On Investment
What is "Return on Investment"?
How is 'Return on Investment' calculated in sports betting?
Why does Trackpicks rank handicappers based on ROI?
At Trackpicks, the amount risked depends on the moneyline. When the moneyline is negative, the amount risked is the absolute value of the money line. For example, the wager "Utah Jazz -8.5 -110" has a moneyline of -110. The amount risked is $110 x the number of units played. In the case of a 5 unit play, the risked amount would be $550. If the wager won, the profit would be $500 and the ROI would be 500/550 x 100 or 90.9% . If lost, the amount lost would be -$550 and the ROI would be -550/500 x 100 or -100%.
When the moneyline is positive, the amount risked is the number of units x $100. For example, the wager "NY Mets +105" has a moneyline of +105, but the amount risked is $100. If 3 units are wagered, the total amount risked is $300. If the wager won, the profit would be $315 and the ROI would be 315/300 x 100 or 105% . If lost, the amount lost would be -$300 and the ROI would be -300/300 x 100 or -100%.
Here are some examples of ROI for different types of winning wagers. Notice that ROI is not affected by the number of units wagered for an individual play. The ROI for winning wagers on negative moneylines (favored side) will be less than 100%. However, the ROI for winning wagers on postive moneylines (underdogs) will be greater or equal to 100%.
Here are some examples of ROI for losing wagers. Regardless of the moneyline, all losing wagers have a ROI of -100%.