Online sportsbook gambling is fast-paced and unpredictable, and for many it is great fun. But it can also be confusing and frustrating, especially for those with limited experience. The industry is guilty of being packed with needless jargon and abbreviations, and some sports fans need help to keep up.
What’s moneyline betting, and how do you place a parlay bet on the NFL? What are the total rounds in boxing, and what’s the best Asian handicap for soccer bettors? Sometimes, it can seem like there are more questions than answers. Thankfully, our team of experienced betting enthusiasts are on hand to offer assistance.
In this article, we explain the difference between Return on Investment (ROI) and Yield in online sportsbook betting. When you learn what makes ROI and Yield unique, you’ll better understand how to use them when wagering on sports, calculating your returns, or building a strict betting budget.
Keep reading as we explain all in this easy-to-follow article that’s designed to help both new and experienced bettors. We will start with by explaining Return on Investment, how it works in sports gambling, and the easiest way to calculate the potential ROI. Then, we delve into Yield, detailing what it means in a sportsbook context, the simplest way to calculate the potential Yield from a bet, and why it’s important to calculate the efficiency and accuracy of a betting strategy.
Let's dive in.
Return on Investment (ROI) in Sports Betting💵
You may have come across the term ‘Return on Investment’ mentioned in betting circles in the past, but it’s also commonplace in investment arenas. What does it mean, and how can it assist you when gambling? Put simply, ROI shows the profitability of a wager in relation to the cost of the bet, otherwise known as the stake.
ROI proves the effectiveness of bets made over a period of time, such as a week, month, year, or sports season. Professional gamblers use the information gained to highlight which types of bets bring them the most success and which sports or markets they should avoid in the future. They can then target their bets to take advantage of the most profitable areas.
How to Calculate ROI
Here’s how you can easily calculate return on investment when gambling on any major sport at any licensed online bookmaker.
Return on Investment = Net Profit divided by Total Investment, multiplied by 100.
In this formula, the net profit is the total of your winnings minus your stakes. The total investment above is the sum of all bets made. For example, if you gamble $1000 on sports in a year and end with $1500, the ROI would be calculated at 50%. That shows a profitable year for the gambler and an impressive ROI.
Yield in Sports Betting
Now, let’s turn our attention to explaining Yield in sports betting. ROI showcases if bets are profitable or not over an agreed period and demonstrates that as a percentage. On the other hand, Yield is a calculation that shows beyond all doubt the effectiveness of a betting strategy.
Most bettors use a betting strategy, which comes in many different shapes and sizes. If you use a strategy to gamble on horse racing, for example, it’s worth knowing for sure if it’s working for you and worth sticking with for another season.
You can also analyze popular strategies and calculate their Yields to determine which is the best to adopt ahead of your next round of bets. Finding a reliable betting strategy could turn your gambling from a loss to a profit, and calculating yields can help you achieve that.
How to Calculate Yield
If you’ve ever wondered how to calculate yield quickly so you can instantly compare betting strategies, then you're in the right place. This formula is simple to follow, and you can apply it to all betting methods and sports, from an NFL season to an English Premier League campaign.
Although it may seem difficult at first glance, calculating the yield of your sports bets is simple when using this basic formula that works every time.
Yield = Net Profit divided by Total Amount Wagered multiplied by 100.
The above calculation may seem similar to what we used to calculate the Return on Investment, but there are some important differences.
Net profit is your total winnings minus your stake. If you gambled $1000 and won $1500, your net profit is $500. You must then divide your net profit by your total amount wagered, and that’s the sum of all stakes without the winnings or losses included.
Let’s insert that into an example to help make things even clearer.
Sticking with the previous example, you must calculate your returns of $1500 minus your $1000 stakes for a net profit of $500. Let’s say you gambled $5000 during the season. We now have a $500 net profit divided by the $5000 total wagered and multiplied by 100 to leave us with a Yield of 10%.
You now know that for every $1 spent following that betting strategy, you return $1.10. That may seem small on one bet, but it could add up to a handsome profit over the year.
Educated Bets are the Best Bets
In its simplest terms, ROI vs. Yield is the overall profitability of your betting activity versus the efficiency of your betting strategy.
ROI allows you to compare different bets or time periods, whereas calculating Yield will help you find the right strategies, bets, and markets. You can then use the findings to optimize your approach to achieving maximum profits.
Understanding the differences between ROI and Yield allows bettors to navigate the exciting world of online sports gambling, taking a mathematical approach to beating the bookies.
Want to elevate your predictions? Sports pick communities are great for bettors eager to improve their betting knowledge. You’ll find many Telegram channels and Discord groups run by industry experts who share their experiences, advice, and betting suggestions. Follow these groups for picks and a greater understanding of the sports betting industry.
You can find some of the best online sports picks communities right here on Whop. Find the right group for you, learn from experienced cappers, and place educated, informed bets. To join one of these groups, check out this guide to the best sports betting Discord servers!
