Blackjack Strategy Calculator

How to Use the Risk of Ruin Calculator Tool

The tool is straightforward and intuitive to use. Here are the steps you need to take to get reliable results with it:

• Step 1: Input data about your planned session. This includes your total bankroll, the game you’re planning to play, the game’s house edge, and how many rounds you’re planning to play over a specific time period. Note that this data can be changed and updated on the fly, accounting for any changes in your betting or session length.

• Step 2: Run the calculator. The tool will provide you with results, including the total risk of ruin, the expected loss for the session, and the probability of winning. You can find more information about the calculator’s output below.

• Step 3: Adjust the session to optimize results. You can then change the input data and see how it affects the figures. This allows you to efficiently plan out sessions to minimize the risks and maximize your chances of coming out ahead.

What is Risk of Ruin?

In gambling, the Risk of Ruin is defined as the probability that the player will lose their entire bankroll before reaching their profit goal.

To understand RoR, we first have to understand two essential gambling terms: house edge and expected value.

The house edge means that every casino game features an inherent advantage for the casino. In many cases, it means that the player is slightly more likely to lose than to win any bet they make. Alternatively, the house edge exists because bets pay less than their probability implies they should, which causes players to lose more than they win in the long run. You can read more about it in our guide to RTP in live casino games.

The expected value represents how much you can expect to win or lose from a bet or series of bets based on its odds. In gambling, expected value is always negative due to the house edge: on average, you will lose a small part of your stake with every bet. If applied to a longer series of bets, it tells you how you can expect your bankroll to change as you keep playing. You can read more about this term and its effects here.

With that in mind, the Risk of Ruin shows the probability that you will lose your entire bankroll due to repeated bets against a house advantage. Like we just said – on average, you lose a small part of your bankroll with every bet. These losses compound over repeated rounds. The RoR is the chance that the losses will add up so much that your bankroll eventually reaches 0, preventing your from any further betting.

What do the Results Mean?

Now that we understand the calculator’s main purpose, let’s look at the data it provides and how it can be used:

• Probability of Ruin – Shows the probability that your planned gaming session will end with your bankroll reaching zero. Broadly speaking, the higher the game’s house edge and the longer your session, the bigger the Risk of Ruin. However, it also depends on the game’s volatility – more volatile games have a higher risk of ruin, but also a better chance to win in the long term due to standard deviation.
• Expected loss – How much of your bankroll you are expected to lose, on average. This is statistically the most likely outcome of your session – it’s the average loss based on the bets you’re playing and how much you’re playing them.
• Total standard deviation – The chances of getting non-average results; the volatility of your planned session. In this context, results that deviate from the average can either mean that you win more than you lose or that you lose more than average. More volatile games and bets tend to have higher standard deviation.
• Prboability win – The probability that you will turn a profit during the session. This figure is higher for games with a lower house edge and higher volatility, although higher volatility also means that the risk of ruin is higher.

Why Use Our Risk of Ruin Calculator Tool?

The tool offers a lot of insight into the maths and statistics behind common gambling games. This is useful in several ways:

• It allows you to understand the risks associated with your favorite casino games. Particularly, the chances of you turning a profit (which are always lower than your chances of turning a loss), as well as the probability of losing your entire bankroll.
• It tells you the projected effect of your session on your bankroll. This allows you to control your spending, which is useful as a money management tool.
• It allows you to improve and refine your casino strategies over time. By adjusting the tool’s parameters, you can find the most efficient way to plan out sessions and allocate your gambling budget, keeping the risks to a minimum while optimizing your win probability.
• It advises you how to build your bankroll and how many betting units to bring to the table. Among other things, the gambling RoR calculator explains the worst-case scenario for your session, letting you plan accordingly.
• It’s handy for responsible gaming. Keeping your spending in check is a crucial aspect of responsible gambling. The tool enables you to plan sessions and understand the risks, providing a clearer picture of the dangers associated with gambling and allowing you to manage them more effectively.