In poker the *risk of ruin* quantifies the probability that a playerβs bankroll will be depleted to zero given a fixed edge and the natural variance of the game. It is a crucial metric for bankroll management because it translates abstract winβrate numbers into a concrete probability of busting.
The calculation relies on three core inputs: the playerβs winβrate (expressed as a percentage of the average pot), the variance (or standard deviation) of the results per hand, and the size of the bankroll relative to the typical bet. Higher variance or a smaller bankroll dramatically inflates the chance of ruin, even when the edge is positive.
Mathematically the risk of ruin for a series of independent bets can be approximated by an exponential function. The formula shows that the probability decays rapidly as the bankroll grows, but it also highlights the sensitivity to the edge (pβq) and the variance ΟΒ².
What is the risk of ruin in poker?
How do I calculate my win rate for this calculator?
What does variance mean in poker risk of ruin?
How important is bankroll size when calculating risk of ruin?
Can this calculator give me an exact percentage of losing all my money?
What should I do if the risk of ruin is too high for my comfort level?
Is there a way to reduce the risk of ruin in poker?
Results are for informational purposes only and do not constitute professional advice.
