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Risk of Ruin

The probability you go broke given your win rate, variance, and bankroll.

What is Risk of Ruin in poker?

Risk of RuinThe probability you go broke given your win rate, variance, and bankroll. Risk of ruin is the probability that a poker player goes broke — busts their bankroll — given their win rate, standard deviation, and starting bankroll size. Most serious players target risk of ruin below 5%. Risk of ruin drops exponentially as bankroll grows relative to standard deviation. Doubling bankroll cuts risk of ruin by an order of magnitude, not by half.

Formula

Approximate: RoR ≈ exp(−2 × WR × BR / SD²), where WR is win rate in BB/100, BR is bankroll in BB, SD is standard deviation in BB/100.

Example

A 5 BB/100 NLHE winner with SD = 100 and a bankroll of 3,000 BB has RoR ≈ exp(−2 × 5 × 3,000 / 100²) = exp(−3) ≈ 5%. Doubling the bankroll to 6,000 BB drops RoR to roughly 0.25% — a 20× improvement.

How StackEdge uses Risk of Ruin

StackEdge tracks Risk of Ruin automatically from your session log and surfaces it across the analytics dashboard, alongside related metrics — broken down by game type, venue, stakes, day of week, and time of day. See the full analytics suite →

Related terms

  • BankrollThe total amount of money set aside specifically for playing poker.
  • VarianceThe statistical spread of your poker results around your expected win rate.
  • Win RateLong-term profit rate, in BB/100 for cash or ROI for tournaments.
  • Sample SizeNumber of hands or tournaments — determines how reliable your win rate is.
Risk of Ruin (Poker Glossary) — Definition + Formula | StackEdge