How do you calculate ROIs when it comes to winning tickets?

[Toddy]

Sorry if wrong forum. I couldn't think where to post this. If I play in a $29 SNG to the Sunday $215 how do I calculate my ROI? Do you calculate it off the $29 or the $215? Thanks for the insight.

[KneeCo]

I asked this same question like a week ago.

Basically, though there was some debate, the conclusion was that you use the buy-in amount. Because realistically, you did spend 215$ dollars to enter the tournament, just in a roundabout way.

[Toddy]

Thanks. I never saw that post. I'm not even sure where I stand on this. I saw the other link and can see both sides of the arguement.

[LearnedfromTV]

I think the correct answer is to factor in all satellites you play, not only the ones that you win seats from. Whether playing satellites makes your entry fee lower or higher depends on the rate at which you win them. If you are a winning player, your seats are on average cheaper than if you bought in directly, at whcih point the real relevant question is whether the opportunity cost of playing satellites is worth it for you.

For a basic example, if you play 10 $29 buyin satellites to $150 dollar tournaments and win 3 seats, once you play those three tournaments, your ROI for the entire endeavor should be based on the $290 you invested, NOT the $450(+ rake) it would have cost you to buy in directly, but also not the $87 you spent on the three satellites you happened to win. And when you are calculating hourly win rate you should factor in the time spent playing all ten satellites plus the time spent in the three tournaments in which you won seats.

[Exitonly]

ROI is profit/Spent


When you win a satelite, the profit is the value of the seat - sat. cost.

So, yes you use the value of the seat.