kalshikelly.com — optimal bet sizing for Kalshi & Polymarket

Unofficial tool. Not affiliated with Kalshi or Polymarket.

Tired of converting Kalshi percentages to Vegas odds just to run Kelly? This tool skips that. Enter the market price (what Kalshi/Polymarket shows — e.g. 20%) and your fair estimate (what you actually think the probability is — e.g. 35%). The Kelly criterion calculates how much of your bankroll to wager given your edge.

If you have no edge (your estimate ≤ market price), the answer is zero. Scroll down for a full explainer on how Kelly works and why fractional Kelly is often the smarter choice.

Total account balance
$
Fraction of full Kelly to apply
Current contract price on Kalshi / Polymarket
%
What you think the true probability is
%
// HOW IT WORKS

What Is the Kelly Criterion?

The Kelly Criterion is a formula that tells you the optimal percentage of your bankroll to bet when you believe you have an edge. The goal is to maximize long-term bankroll growth while minimizing the risk of ruin.

The classic formula is:

f* = b p − q b
f* — fraction of bankroll to bet
b — net odds received on the bet
p — probability you think you win
q — probability you lose  ( = 1 − p )

Kalshi Example

Suppose a market trades at 20¢ — implying a 20% chance — but you think the real probability is 35%.

On Kalshi-style markets, buying at 20¢ means you risk $0.20 to profit $0.80, so your net odds b are:

b = 0.80 0.20 = 4

With p = 0.35 and q = 0.65, plug into Kelly:

f* = (4)(0.35) − 0.65 4 = 0.1875
Bet 18.75% of bankroll
On a $2,000 bankroll:  $2,000 × 0.1875 = $375

The Intuition

Kelly betting balances aggression, growth, and survival:

  • bigger edge → bet more
  • bigger payout → bet more
  • smaller edge → bet less
  • no edge → bet zero
  • negative edge → don't bet

Why Many People Use Fractional Kelly

Full Kelly maximizes theoretical long-term growth, but the volatility is psychologically brutal. Many experienced bettors use Half Kelly (0.5×) or Quarter Kelly (0.25×) because:

  • Drawdowns are significantly smaller
  • Mistakes in probability estimates hurt less
  • Humans are bad at estimating probabilities precisely
Full Kelly says 18.75%
Half Kelly9.4%
Quarter Kelly4.7%

The Hard Part

Kelly only works if your probability estimate is actually good. If you think a market should be at 35% but reality is 22%, Kelly will massively overbet and destroy your bankroll.

The math is not the hard part. Accurately estimating probabilities better than the market is the hard part.