Help with profitability. Did I over think this?

[Sportsguy_USA]

I'm helping a friend build a spreadsheet to track their bets and his formulas, but thinking I over thought it and made an error in determining profitability on their wagers.


Can someone shed some light if this is correct, or wrong? If wrong, where did I go wrong?



To keep it simple, I'll outline one bet.
Odds -105
Units: 5
Units risk: 4.76 (factors in juice)
His Bankroll is $5K, so he's applying 5% of his bankroll for a unit value of $250 per unit


Here's one example of a bet he made...


Risk: $250 (per unit) x 4.76 = $1190.48
Potential profit: $250 (per unit) x 5 = $1250


He wins, he 'profits' $1250
He loses, his loss is $1077.59


Is the above correct to calculate his profit?


Is there difference between his profit from wagering vs. his unit profit?

[UntilTheNDofTimE]

no the bet is risking 5.00 to win 4.76....If he wagers 5 units on a wager

The line is (-105) so 5.00/1.05 = 4.76 will be the payout

If he wins he will profit 4.76 units( $250 x 4.76) = $1190
If he looses he will lose 5 units( $250 x 5)= -$1250

Your math above is correct if the line was +105 and you were risking 4.76 to win 5.00

[milwaukee mike]

yeah i'm pretty sure that should be +105

[UntilTheNDofTimE]

Is there difference between his profit from wagering vs. his unit profit?

A unit is simply a unit of measurement. A unit will always be directly correlated to your profit/losses. in your example $250=1. so if you were +13.44 units you would multiply this by 250 to see you profit. Conversely if you were +$3360 you would divide this by 250 to see how many units your up. They are both the same thing.