Poker Staking Calculator

Poker staking is a financial arrangement where a backer provides the buy-in for a player in exchange for a share of the profits. This calculator helps both backers and players analyze staking deals, compute markup, model profit splits under different outcomes, and understand the true cost and value of any staking arrangement. For a complete overview of how staking works, see our Poker Staking and Backing Guide.

Understanding Poker Staking Mathematics

Staking in poker is an investment arrangement where a financial backer provides part or all of a player's buy-in in exchange for a percentage of the profits. According to the PokerNews staking guide, the practice has become a fundamental part of the professional poker ecosystem, particularly in high-stakes tournaments where buy-ins can reach tens of thousands of dollars. Understanding the mathematics behind these deals is essential for both parties to ensure fair arrangements.

The core of every staking deal revolves around three variables: the stake percentage (how much the backer invests), the profit split (how winnings are divided), and markup (the premium charged for equity). A player with a proven track record and positive tournament ROI can justifiably charge markup, while an unproven player typically sells at face value or even offers a backer-favorable split to attract investment.

Key Staking Concepts

Stake percentage refers to the portion of the buy-in covered by the backer. In a full staking arrangement, the backer pays 100% of the buy-in. In a partial swap or piece-selling arrangement, the backer might cover 25-75% while the player retains the rest. The backer receives a proportional share of the gross payout based on their stake, plus any additional profit-split terms agreed upon.

Profit split determines how net profits are divided after the backer recoups their investment. A common structure is 50/50, meaning once the backer's buy-in is returned, remaining profits are split equally. More favorable splits like 60/40 toward the player are common for experienced players, while 40/60 toward the backer may apply for newer players who need to prove themselves. Understanding how these splits affect your bankroll management is crucial for long-term success.

Markup is the premium charged above face value for a share of action. If a player sells 50% of a $1,000 buy-in at 1.3x markup, the buyer pays $650 instead of $500 for that 50% share. Markup compensates the player for their skill edge. Research published by the Primedope poker analytics platform shows that consistent tournament ROI above 20% over large sample sizes is considered strong, and such players can reasonably charge markup in the 1.1x-1.5x range depending on the specific event and field size.

Makeup: The Most Misunderstood Staking Concept

Makeup (sometimes called "make-up" or "debt") is an accounting mechanism where a player's losses carry forward from one session to the next. Under a makeup arrangement, if a player loses their backer's $1,000 investment in one tournament, that $1,000 becomes a debt. In the next profitable session, the backer recoups both the current buy-in and the accumulated makeup before any profit split occurs.

For example, imagine a player on a 50/50 deal with makeup who loses three consecutive $1,000 tournaments before winning $8,000 in the fourth. Under makeup, the backer first recoups the current buy-in ($1,000) plus the accumulated makeup ($3,000), totaling $4,000. The remaining $4,000 profit is then split 50/50, giving each party $2,000. Without makeup, the backer would only recoup the current buy-in ($1,000) from the $8,000 win, splitting the $7,000 profit equally at $3,500 each.

Makeup arrangements are generally more favorable to backers and can create significant psychological pressure on players during downswings. The Two Plus Two poker forums contain extensive discussions about the impact of makeup on player performance and mental game, with many professionals advising that both parties clearly understand and agree to makeup terms before beginning any staking relationship.

How to Evaluate a Staking Deal

Whether you are a player considering selling action or a backer evaluating an investment, several factors determine whether a staking deal is fair and profitable. The most important consideration is the player's expected ROI in the specific games they will be playing. A player's ROI from tournament play should be analyzed over a large sample of events to account for the high variance inherent in tournament poker.

For backers, the key question is whether the expected return justifies the markup price. If a player has a 25% ROI and sells at 1.2x markup, the backer's expected return per dollar invested equals the player's ROI divided by the markup, minus one. In this case: (1.25 / 1.20) - 1 = 4.2% expected return. Compare this with the risk involved, since tournament poker has extremely high variance and even winning players can go on extended losing runs as explored in our Variance Simulator.

For players, selling action at markup can be an effective way to reduce variance while maintaining a positive expected value from every event entered. The optimal strategy involves selling enough action to remain well-bankrolled while retaining enough of your own action that the markup income alone provides a meaningful edge, even in losing sessions.

Common Staking Structures

Full staking (100% backed): The backer pays the entire buy-in and receives their investment back from any cash, plus their share of the profit split. This is the classic staking model and is most common for players who lack their own bankroll but have demonstrable skill.

Selling pieces (partial backing): A player sells a percentage of their action, often with markup. For example, selling 40% of a $5,000 tournament at 1.25x means collecting $2,500 from investors while retaining 60% of their own action. This is popular among mid-to-high-stakes professionals who want to reduce variance without giving up a profit split.

Swaps: Two players exchange a percentage of their action in the same event, usually at no markup. If Player A and Player B each swap 10%, they essentially diversify their "poker portfolio" across two entries rather than one. Swaps are covered in detail in our staking arrangements guide.

Responsible Staking Practices

Staking arrangements involve real financial risk for both parties. Players should never sell more action than they are comfortable with, and backers should diversify across multiple players rather than concentrating their investment in a single individual. All agreements should be documented in writing, with clear terms covering profit splits, makeup policies, game selection restrictions, and termination clauses.

Remember that even the best poker players experience significant losing periods. Our poker probability guide explains why short-term results in poker are dominated by variance rather than skill. Both backers and players should enter staking arrangements with realistic expectations about the timeline required for expected value to manifest.