The bookmaker commission is one of the most important aspects when it comes to betting. The commission, which varies from bookmaker to bookmaker, can have a major impact on your return on investment. This article will teach you how to calculate the commission in order for you to get an accurate estimate of your profit margin.
The commission is generally a percentage of the total amount that you bet. For example, if you bet $100 and the commission is five percent, then the bookmaker will keep $105 (five percent of $100 + original bet). This means that your net profit from this particular wager would be -$five dollars (-$100 minus $105).
It’s important to remember that the commission is not just applied to winnings, but also to losses. So, if you lose your bet, you will still have to pay the commission on that loss. In addition, some bookmakers charge a different commission rate for each type of wager (e.g., straight bets versus parlays).
Now that you know what the commission is and how it works, let’s learn to calculate this percentage.