Bet smarter with our Kelly Criterion calculator. Kelly Criterion calculators are tools used to calculate optimal betting strategies so you can work out the best size of a wager and maximize your winnings over a period of time while mitigating losses.
What is the Kelly Criterion calculator and how does it work?
The Kelly Criterion calculator is designed to identify the specific percentage of your total bankroll that you should be staking at a given opportunity. It is used to prevent players from overbetting on a wager, so you don't risk too much on a single outcome, and to prevent underbetting so you can capitalize on a high value wager.
To get the optimal wager amount you need to factor in three important pieces of information:
- Current bankroll: The total amount of money you have to wager
- Decimal odds: The odds given to you by a bookmaker, or the ratio of the potential payout
- Win probability: Your estimated chance of winning as a percentage
The win probability is the hardest to work out but is also the most crucial.
You will be given the option in the calculator to select your Kelly multiplier. This is done to prevent aggressive strategies for more cautious players that could result in huge swings in your bankroll. You can think of Kelly multipliers like this:
- Full Kelly (1.0): This maximizes the growth potential of your bankroll but is highly volatile.
- Half Kelly (0.5): What most players choose as it achieves around 75% growth with only 50% volatility.
- Quarter Kelly (0.2-0.3): A popular strategy for beginners, dramatically decreasing volatility while providing steady growth.
You can set your Kelly multiplier anywhere between 0.1 and 1.0. What you set it to depends on the amount of risk you're willing to take.
What the results mean
If you get a positive result, the calculator is suggesting a percentage of your bankroll to stake. A higher number indicates a more likely winning outcome. If your results show zero or even negative, this indicates that the odds don't favor any amount based on your estimate. You shouldn't put anything on this.
Should I use the Kelly Criterion calculator?
Kelly Criterion calculators can give you an edge if you can work out your win probability. This can benefit experienced bettors and provide them with consistent advantages, growing a bankroll even further.
Essentially, it is the mathematical way to consistently grow your funds over the long term. It is best utilized if you strictly adhere to the formula, even if you're on a losing streak.
Where can I find the tool?
If you head to bonusfinder.com you will find 'tools' along the top navigation bar. Within that section you will be graced with our fantastic new calculator tool.
