# How is Roulette RTP and House Edge Calculated?

The game of roulette is relatively simple, which means that its RTP (return to player) and house edge are quite easy to calculate.

For the calculation, we will use the European roulette with no special rules. However, the same calculation can be used for other types of roulette with just a few changes.

Expected value (€1 straight up bet) = Possible win * Chance of winning = €36 * (1/37) = €36/37 = €0.973

For other bets, the expected value is the same:

Expected value (€1 bet on red/black) = €2 * (18/37) = €36/37 = €0.973
Expected value (€1 bet on a split) = €18 * (2/37) = €36/37 = €0.973
Expected value (€1 bet on column) = €3 * (12/37) = €36/37 = €0.973

Payouts for every roulette bet are calculated according to the same formula, which means that every single European roulette bet has the same RTP of 97.3 % (the player statistically wins €0.973 for each €1 wagered).

The RTP of all European roulette bets is the same. However, there are some special rules that can make certain bets less advantageous for the casino, increasing the RTP and decreasing the house edge.

For American roulette, the calculations are very similar, just reaplace 37 with 38 cause there are 38 possible outcomes of a double zero roulette game.

Every outcome of an American roulette game is a little bit less likely to occur than in European roulette, while the payouts remain the same. That’s precisely why American roulette has a worse RTP of 94.74%.

American roulette has one bet with an even worse RTP (92.1 %). This is because of the non-standard chance to win (5/38) and payouts (7x bet) of the top line bet. The RTP calculation for this bet is: Expected value (€1 top line bet) = €7 * (5/38) = 35/38 = 0.921.

The house edge can be easily calculated using the RTP like this:

House edge = 1 – RTP

Therefore, the roulette house edge is:

House edge (European roulette) = 1 – 97.3 % = 2.7 %
House edge (American roulette) = 1 – 94.74 % = 5.26 %

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