The Kelly Criterion is a popular method of bankroll management used in the sports betting world. This method allows for the bettor optimize their bet size, while limiting their exposure to ruin (i.e. loss of entire bankroll). The widget below calculates how much one should bet based on three factors.
- Bankroll: This is the total amount of money that the bettor currently has at their disposal to gamble. More discussion on bankroll issues can be found in our blog on building a bankroll.
- Odds of the Bet: Simply, the odds of the bet in American odds format.
- Probability of Success: This is the estimated probability of success of the given bet. Though this is typically unknown to the bettor, it can be estimated with the no-vig line.
For further reading, we take a much closer look at the Kelly Criterion here.