There are many types of rakeback deals, each calculated in a specific way. In this article, we will be focusing on shared rakeback calculation. First, we'll briefly explain how shared rakeback works and then provide the exact formulas to calculate it.
Shared rakeback is paid to a player who contributed to a raked pot. It is paid out based on the average rake, meaning the total rake, divided by the number of participants. A contributor is anyone who places chips into the pot, regardless of the amount. A Small Blind or Ante bet is considered a contribution, even if the player folds immediately after.
1: Find the Total Rake
The first thing you'll need to do is find the total rake. This is based on the pot size, and varies by the rake schedule of the online poker room.
For this tutorial, we'll use the industry standard rake of 5% up to $3 max. Be sure to check the rake schedule at your online poker room to guarantee
accurate Shared Rakeback calculations.
You need to divide the pot size by the 5%: Pot / 5% = Rake ($3 max)
Let's say the ending pot has $80 in it: $80 / 5% = $4, reduced to the maximum $3 Rake.
A $40 pot would be $40 / 5% = $2 Rake
2: Find the Median Rake
Now that we know the total rake, we need to find the median, or average rake. This is done by dividing the total rake by the number of players who
actually contributed to the pot.
Rake / Contributors = Median Rake
Let's say your hand that ended in an $80 pot, and $3 rake, had 8 players at the table, but only 4 of them contributed to the pot.
$3 / 4 = $0.75 Median Rake
3: Find your Rakeback Profits
This is the final step, where we will determine exactly how much you get in Shared Rakeback profits for the hand.
You will need to divide the Median Rake by your Shared Rakeback Percentage.
Median Rake / Shared Rakeback % = Rakeback Profit
As we said before, the average Rakeback percentage is 30%, so we'll use that here. The Median Rake was $0.75. $0.75 / 30% = $0.225
Since this is an example, we'll say you earned about $0.23 in Rakeback for this hand. Of course, your Rakeback accumulates over many hands,
and partial cents will add up as well. So, if this type of hand occurred twice, you would get $0.45 in Shared Rakeback ($0.225 + $0.225) for both
hands combined.