Risk of Ruin Calculator

Risk of ruin (RoR) is the probability that you will lose your entire bankroll before reaching your goal. For an advantage player, knowing your RoR is the single most important number in bankroll management — it tells you whether your bet size is sustainable for your bankroll.

Risk of ruin · Reckless

16.90%

Over 13.5% RoR. Beyond full Kelly. One typical drawdown sequence and you're out.

The formula

For a positive-edge game, the standard exponential approximation is:

RoR = e^(-2 × edge × bankroll / (σ² × bet))

Where edge is your fractional edge per bet, bankroll is your starting roll, σ is per-unit standard deviation, and bet is unit bet size. The formula assumes constant bet size and constant edge — a simplification that holds well enough for tournament-style or fixed-spread play.

What RoR numbers actually mean

Bankroll multiples — the rule of thumb

A common shortcut: aim for ≥ 1000× the unit bet for 1% RoR at typical AP edges. With a $5 unit bet, that's a $5,000 bankroll. Half-Kelly play targets the same 13.5% RoR as full-Kelly per unit but at a different bet sizing. The calculator above lets you check your exact number rather than relying on the rule of thumb.

Why the formula breaks for negative edge

If you don't have an edge, the math says your RoR approaches 100% — given enough time you will bust. The formula above explicitly returns 1 for non-positive edge. If you're playing a -EV game, your only bankroll question is how long until you bust, not whether.

FAQ

What's a good risk-of-ruin target?

Professional advantage players target 1% RoR — a 99% chance of reaching their goal before busting. Aggressive trip play accepts 5%. Full Kelly is 13.5% RoR. Anything above 25% is reckless.

Does risk of ruin work for casino-edge games?

No. The exponential RoR formula assumes a positive edge. For house-edge games, your bankroll's expected outcome is negative — the relevant question is expected duration before bust, not probability of bust.

How does bet size affect RoR?

Doubling your bet roughly squares your RoR for the same bankroll. If you go from RoR = 1% to a 2× bet, expect RoR closer to 10% — variance dominates the formula at large bets relative to bankroll.

What standard deviation should I use?

Blackjack basic strategy: σ ≈ 1.14. Counting at typical spreads: σ ≈ 1.4-1.6. Video poker (JoB 9/6): σ ≈ 4.42. The calculator's drop-down covers the common cases.

Does Wonging change the calculation?

Yes — if you only play favorable counts, your effective edge per hand is much higher and your RoR drops accordingly. Use your edge per round actually played, not your edge averaged over all rounds.

Related

Last updated 2026-05-06. Spot an error?