Poker Staking Markup Calculator
This tool helps calculate the cost of buying action in a poker tournament, factoring in markup. Staking is when someone (a staker) pays for part or all of a player's tournament buy-in in exchange for a percentage of any winnings. Markup is an additional percentage added to the cost, reflecting the player's perceived skill or desirability.
Enter Staking Details
Understanding Poker Staking & Markup
What is Poker Staking?
Poker staking is an agreement where one person (the staker or backer) provides funds for another person (the player or horse) to enter a poker tournament or series of tournaments. In return, the staker receives a percentage of any winnings the player earns. It helps players manage variance and play in bigger events, while allowing stakers to invest in promising players' potential profits.
What is Markup?
Markup is an additional fee charged by a player on top of the raw cost of the tournament buy-in. It's typically expressed as a multiplier (e.g., 1.1x, 1.2x) or a percentage (e.g., 10% markup = 1.1x). A 1.1x markup means the staker pays 1.1 times the pro-rata cost of the buy-in. A player with a strong track record and reputation can command higher markup.
Example: A player selling 50% of their action in a $100 tournament at 1.1x markup.
- Cost per 1% of action = $100 / 100 = $1
- Raw cost for 50% = $1 * 50 = $50
- Markup amount = $50 * (1.1 - 1) = $50 * 0.1 = $5
- Total cost for 50% = $50 + $5 = $55
- Using the markup percentage (10%): Markup Amount = $50 * (10/100) = $5. Total Cost = $50 + $5 = $55.
How to Calculate Markup
Using a percentage (like this calculator does):
- Cost per 1% (Pre-Markup) = Total Buy-in / 100
- Markup Amount per 1% = Cost per 1% (Pre-Markup) * (Markup Percentage / 100)
- Cost per 1% (Post-Markup) = Cost per 1% (Pre-Markup) + Markup Amount per 1%
- Total Staking Cost = Cost per 1% (Post-Markup) * Percentage of Action Being Sold
Using a multiplier (X.X):
- Cost per 1% (Pre-Markup) = Total Buy-in / 100
- Cost per 1% (Post-Markup) = Cost per 1% (Pre-Markup) * Markup Multiplier
- Total Staking Cost = Cost per 1% (Post-Markup) * Percentage of Action Being Sold
- (Markup Multiplier = 1 + Markup Percentage / 100)
Poker Markup Examples
See common staking scenarios calculated:
Example 1: Standard Markup
Scenario: Buying 20% of a player in a $500 tournament with 10% markup.
1. Known Values: Buy-in = $500, Action Sold = 20%, Markup = 10%.
2. Calculations:
- Cost per 1% (Pre) = $500 / 100 = $5
- Markup per 1% = $5 * (10/100) = $0.50
- Cost per 1% (Post) = $5 + $0.50 = $5.50
- Total Staking Cost = $5.50 * 20 = $110
Conclusion: Buying 20% will cost $110.
Example 2: Buying 100% (Full Buy-in)
Scenario: Staking a player for 100% of a $100 tournament with 5% markup.
1. Known Values: Buy-in = $100, Action Sold = 100%, Markup = 5%.
2. Calculations:
- Cost per 1% (Pre) = $100 / 100 = $1
- Markup per 1% = $1 * (5/100) = $0.05
- Cost per 1% (Post) = $1 + $0.05 = $1.05
- Total Staking Cost = $1.05 * 100 = $105
Conclusion: The full buy-in will cost the staker $105.
Example 3: High Markup Player
Scenario: Buying 5% of a top pro in a $10,000 tournament with 30% markup.
1. Known Values: Buy-in = $10,000, Action Sold = 5%, Markup = 30%.
2. Calculations:
- Cost per 1% (Pre) = $10,000 / 100 = $100
- Markup per 1% = $100 * (30/100) = $30
- Cost per 1% (Post) = $100 + $30 = $130
- Total Staking Cost = $130 * 5 = $650
Conclusion: 5% action costs $650.
Example 4: Low Stakes, Low Markup
Scenario: Buying 40% of a player in a $25 tournament with 2% markup.
1. Known Values: Buy-in = $25, Action Sold = 40%, Markup = 2%.
2. Calculations:
- Cost per 1% (Pre) = $25 / 100 = $0.25
- Markup per 1% = $0.25 * (2/100) = $0.005
- Cost per 1% (Post) = $0.25 + $0.005 = $0.255
- Total Staking Cost = $0.255 * 40 = $10.20
Conclusion: 40% action costs $10.20.
Example 5: No Markup
Scenario: Buying 30% of a player in a $1000 tournament with 0% markup.
1. Known Values: Buy-in = $1000, Action Sold = 30%, Markup = 0%.
2. Calculations:
- Cost per 1% (Pre) = $1000 / 100 = $10
- Markup per 1% = $10 * (0/100) = $0
- Cost per 1% (Post) = $10 + $0 = $10
- Total Staking Cost = $10 * 30 = $300
Conclusion: 30% action costs $300 (exactly 30% of the buy-in).
Example 6: Small Buy-in, High Percentage
Scenario: Buying 80% of a player in a $55 tournament with 8% markup.
1. Known Values: Buy-in = $55, Action Sold = 80%, Markup = 8%.
2. Calculations:
- Cost per 1% (Pre) = $55 / 100 = $0.55
- Markup per 1% = $0.55 * (8/100) = $0.044
- Cost per 1% (Post) = $0.55 + $0.044 = $0.594
- Total Staking Cost = $0.594 * 80 = $47.52
Conclusion: 80% action costs $47.52.
Example 7: Large Buy-in, Small Percentage
Scenario: Buying 3% of a player in a $25,000 tournament with 15% markup.
1. Known Values: Buy-in = $25,000, Action Sold = 3%, Markup = 15%.
2. Calculations:
- Cost per 1% (Pre) = $25,000 / 100 = $250
- Markup per 1% = $250 * (15/100) = $37.50
- Cost per 1% (Post) = $250 + $37.50 = $287.50
- Total Staking Cost = $287.50 * 3 = $862.50
Conclusion: 3% action costs $862.50.
Example 8: Mid-Stakes with Common Markup
Scenario: Buying 15% of a player in a $1,050 tournament with 12% markup.
1. Known Values: Buy-in = $1,050, Action Sold = 15%, Markup = 12%.
2. Calculations:
- Cost per 1% (Pre) = $1,050 / 100 = $10.50
- Markup per 1% = $10.50 * (12/100) = $1.26
- Cost per 1% (Post) = $10.50 + $1.26 = $11.76
- Total Staking Cost = $11.76 * 15 = $176.40
Conclusion: 15% action costs $176.40.
Example 9: Fractional Markup
Scenario: Buying 25% of a player in a $215 tournament with 7.5% markup.
1. Known Values: Buy-in = $215, Action Sold = 25%, Markup = 7.5%.
2. Calculations:
- Cost per 1% (Pre) = $215 / 100 = $2.15
- Markup per 1% = $2.15 * (7.5/100) = $0.16125
- Cost per 1% (Post) = $2.15 + $0.16125 = $2.31125
- Total Staking Cost = $2.31125 * 25 = $57.78
Conclusion: 25% action costs $57.78 (rounded to cents).
Example 10: Minimum Buy-in
Scenario: Buying 50% of a player in a $1 tournament with 10% markup.
1. Known Values: Buy-in = $1, Action Sold = 50%, Markup = 10%.
2. Calculations:
- Cost per 1% (Pre) = $1 / 100 = $0.01
- Markup per 1% = $0.01 * (10/100) = $0.001
- Cost per 1% (Post) = $0.01 + $0.001 = $0.011
- Total Staking Cost = $0.011 * 50 = $0.55
Conclusion: 50% action costs $0.55.
Frequently Asked Questions about Poker Staking Markup
1. What is poker markup?
Markup is an additional percentage added to the raw cost of buying a percentage of a player's action in a poker tournament. It's based on the player's perceived skill and expected return on investment (ROI).
2. Why do players charge markup?
Skilled and successful players charge markup because they are expected to be profitable in the long run. Stakers are willing to pay the extra fee for the opportunity to invest in a player with a higher probability of cashing and making deep runs.
3. How is markup typically expressed?
Markup is often expressed as a multiplier (e.g., 1.1x, 1.5x). A 1.1x multiplier means 10% markup (staker pays 110% of the pro-rata cost). This calculator uses the percentage format (enter 10 for 10% markup).
4. Is paying markup worth it for a staker?
It depends entirely on the player. If a player's expected ROI is high enough, paying markup can still result in a profitable investment for the staker over a large sample of tournaments. It's a risk assessment.
5. Can markup be negative?
Negative markup (sometimes called make-up or discount) is rare but can occur if a player is considered less likely to be profitable or is in urgent need of funds and willing to sell action below cost.
6. What is "Cost per 1% (Pre-Markup)"?
This is simply the total tournament buy-in divided by 100. It's the theoretical cost of buying 1% of the buy-in without any markup applied.
7. What is "Cost per 1% (Post-Markup)"?
This is the actual cost of buying 1% of the action after the player's markup has been added. This is the value multiplied by the percentage you are buying to get the total staking cost.
8. What is the typical range of markup?
Markup varies greatly depending on the player's reputation, results, and the format/stakes of the tournament. It can range from 0% for lesser-known players to over 30% (1.3x) or even higher for elite players in certain events.
9. Can I buy more than 100% of a player's action?
No, you can only buy up to 100% of a single player's action in a single tournament. If multiple stakers are involved, the total percentage sold cannot exceed 100%.
10. Does this calculator account for tournament fees?
This calculator works based on the "Total Tournament Buy-in" figure provided. This figure *should* represent the full cost to enter the tournament, including both the prize pool contribution and any fees (e.g., a $100+$10 tournament has a $110 total buy-in). Ensure you enter the total amount.
