Sunk cost
Chips already in the pot, which should not affect what you do next.
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- What it means
- A sunk cost is money already spent that no decision can bring back. In poker, the chips you put in on earlier streets belong to the pot. The sunk cost effect is continuing because of what you have already paid.
- How it is calculated
- Count the pot as it stands and the price of the next call. What you contributed is part of the pot you can win, and that is the only way it matters. It is never a reason by itself to continue.
- Worked example
- You have put 30bb into a 70bb pot and face a 50bb bet. You need 50 ÷ 170 = 29% equity. Having 30bb in already does not change that number.
- Why it matters
- The thought that you have come too far to fold is an expensive one. Pot odds already account for every chip in the middle.
See also: Pot odds, Loss aversion, Required equity