House Edge Calculator

House edge calculator: separate turnover from balance

Turnover is the sum of stakes made across all rounds. If the stake is 2 credits and the model contains 150 rounds, turnover is 300 credits. This does not imply that you started with a 300-credit balance. Returned credits can be used again, causing turnover to exceed the starting balance.

The model uses constant stake and edge. It does not simulate stopping when a balance reaches zero. It also does not estimate the number of rounds a particular balance can sustain. Those questions require the distribution of outcomes, a starting balance, and a stopping rule.

Use the formula

Expected loss = turnover × house edge / 100. Expected net result from the player side is the negative of that amount. Expected gross return = turnover minus expected loss. If RTP and edge use the same denominator and scope, house edge = 100% minus RTP. A quoted percentage is meaningful only when its basis is clear.

These rows are separate examples, not evidence that a particular game has one of those edges. You supply the edge. For games with player decisions, the percentage can depend on the rules and the decision method. A single generic blackjack percentage would not fit every rule set or action pattern.

What expectation means

Imagine many hypothetical sessions using the same fixed settings. Their average net result is the expectation when the model assumptions are correct. Individual sessions can finish above or below it. The calculation alone cannot provide the probability of profit, the largest possible loss, or the range containing most outcomes.

Two games can share a 4% edge and still have different result patterns. One might frequently return a little while another rarely returns a large amount. The mean does not reveal volatility. You would need each payout and its probability to calculate variance or simulate a defensible distribution.

Linearity allows expected values to be added. It does not mean that all realized outcomes are independent or equally variable. If the input edge changes after a rule or strategy change, calculate those portions separately before adding their expectations.

Check the denominator before comparing figures

A quoted edge might be measured against the initial stake rather than every extra stake added later. Doubling and splitting in card games are examples where the basis matters. A figure computed from total action and one computed from starting bets cannot be compared without checking definitions.

Observed return is the sum of actual payouts divided by actual turnover in a sample. Theoretical RTP is computed from the full probability model. A sample above 100% return can occur without changing the theoretical edge. Likewise, a below-average sample does not establish that the next round will compensate it.

Use the roulette odds calculator for a complete fixed-payout example, and the slot mechanics guide for a simple probability table. This tool checks arithmetic after assumptions are supplied. It cannot verify an operator claim, discover undisclosed rules, or convert an expectation into a guaranteed result.