GlossaryOdds and value

Required equity

The minimum equity a call needs to break even, given the price you are being offered.

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What it means
Required equity is the break-even point for a call. With exactly this much equity a call wins as much as it loses in the long run.
How it is calculated
Required equity = cost of the call ÷ (pot before the call + cost of the call).
Worked example
The pot is 30bb and you must call 10bb. Required equity = 10 ÷ (30 + 10) = 25%. With 30% equity the call is profitable; with 20% it is not.
Why it matters
It turns a feel decision into arithmetic. Estimate your equity, compare it with the requirement, and the answer usually falls out.

Try it: Poker math, Free lesson: the call that loses and still pays, Pot odds calculator, Printable cheat sheet

Formula and worked example: Pot odds and required equity in poker math

Lessons that teach it: The call that loses and still pays (free), Work out the price of a call, The same hand can face a different price, What a call is worth on average, Facing a continuation bet, Calling with a bluff-catcher, Why a bubble call needs more than its price · lessons other than the free one need an invite

See also: Pot odds, Equity, EV