Welcome to the Kelly Criterion calculator. We have built all the tools you need to make your sports betting (and specifically your knowledge of the Kelly Criterion) better! Below we have a Kelly Criterion calculator and some more information on the Kelly Criterion in general.
How does the Kelly criterion calculator work?
By entering your bankroll, the odds and your estimated probability of winning, the Kelly Criterion calculator will tell you how much you should wager on a certain event to maximise your value and profit.
According to the Kelly criterion, you should place a wager of approximately 1.18% of your account balance on this selection.
After applying the fractional Kelly value of 0.04, this adjusts to a wager of approximately 1.71% of your account balance.
Based on your account balance of $1,000, this equates to a wager of $11.76.
The expected value of this wager is approximately $11.76*[(0.68)(0.60) + (-1)(0.4)] = $0.09, which equates to a 0.80% return on the funds wagered.
The Kelly criterion returned a value of -0.0061.
After applying the fractional Kelly value of 0.0, this adjusts to -0.0061 of your account balance.
Because this number is below 0 you should not back the selection at the available odds.
What is the Kelly Criterion?
The Kelly Criterion is a method by which you can used your assessed probability of an event occurring in conjunction with the odds for the event and your bankroll, to work out how much to wager on the event to maximise your value. By inputting the odds, the probability of the event occurring and your betting balance, you will be able to determine the amount you should wager on the event. The fractional Kelly betting input is a way to change how aggressive or conservative you are with your wagering (1 being the standard and moving towards 0 the more conservative you wish to be with your wagering). Ultimately, the Kelly Criterion calculator, if you are accurate with your assessed probability should increase your value and profit over a long-term period.