Subscribe to our newsletter

The best bets and resources to make you more profitable

State

Sports Betting Secrets: The Power of Compounding

<p>AP Photos</p>

AP Photos

One of the most common questions that I get from sports bettors is around when to increase your bankroll. It is a great question, which leads me to one of the most powerful concepts in sports betting: compounding interest.

Compounding interest is “the interest on savings calculated on both sides of the initial principal and the accumulated interest from the previous periods,” per Investopedia. Now, I know that is incredibly wordy, so let me break it down in a much simpler way.

Compounding Interest in Sports Betting

Let’s pretend you start with $1,000 as your sports betting bankroll, and you make a 2% profit daily. On the first day, you started with $1,000 and ended with $1,020 ($1,000 * 2%). Then, on the second day, you would start with $1,020 and make a 2% profit on that number, meaning you would end the second day with $1,040.40.

Sure, that extra $0.40 in profit ($20 vs. $20.40) doesn’t seem like a lot at first, but multiply that over the course of a month, with the same 2% return every day:

  • Starting Bankroll: $1,000
  • Daily Profit: 2%
  • Monthly Profit (assuming 30 days/month): 60%
  • Profit After One Month: $600 ($1,000 * 60%)

By making 2% every single day, you would have profited $600 after only one month of betting. If you apply that profit toward your starting bankroll of $1,000, your new bankroll would be $1,600. Now let’s do it for another month.

  • Starting Bankroll: $1,600
  • Daily Profit: 2%
  • Monthly Profit (assuming 30 days/month): 60%
  • Profit After One Month: $960 ($1,600 * 60%)

That is insane! After only two months of betting, and earning a low percentage of 2% every day, you would have increased your bankroll from the starting point of $1,000 all the way up to $2,560. This is the power of compounding interest.

All you are doing is adding your profits to the pot after every single day of sports betting, and earning a new profit off of that amount. Doing that in this example increased our bankroll by 2.56X after only two months.

Questions? We’d love to hear from you! Reach out to us at [email protected]

Related Posts

news-image

Really long fake post Title

Category

news-image

Really long fake post Title

Category

news-image

Really long fake post Title

Category