Kelly Criterion Calculator

Calculate the optimal fraction of your bankroll to bet using the Kelly Criterion formula.

Inputs

Enter your estimated edge and payout to compute the optimal bet fraction.

Your estimated chance of winning this bet (0–100).

Dollars won per dollar risked (e.g. 2 = win $2 for every $1 bet).

$

If entered, shows the dollar amount to wager.

Kelly Fraction Result

Fill in the inputs and click Calculate to see your optimal bet fraction.
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Summary

Calculate the optimal fraction of your bankroll to bet using the Kelly Criterion formula.

How it works

  1. Enter your estimated probability of winning the bet (as a percentage).
  2. Enter the win/loss ratio — how many dollars you win for every dollar risked (e.g. 2 means you win $2 for every $1 bet).
  3. The calculator applies the Kelly formula: f* = (bp - q) / b, where b is the odds, p is win probability, and q is loss probability.
  4. The result shows the optimal fraction of your bankroll to commit to this bet.
  5. Use fractional Kelly (e.g. half-Kelly) to reduce variance while still growing your bankroll.

Use cases

  • Sports betting bankroll management.
  • Poker and casino game stake sizing.
  • Stock or options position sizing for quantitative traders.
  • Evaluating whether a bet or investment has a positive expected edge.
  • Comparing multiple betting opportunities to allocate capital optimally.
  • Teaching probability and risk concepts in finance or statistics courses.

Frequently Asked Questions

Last updated: 2026-07-23 · Reviewed by Nham Vu