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Item Guide - The Math
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First of all - respect for all the work you did here, I don't even try to imagine how much time it took...
Calculations look nice, but you must remember that numbers are not everything.
You have mentioned about Banshee's Veil. It's pretty expensive, but if enemy team has somebody like Karthus or Amumu - it becomes priceless.
As TurtleFail said, Bloodrazors are much more powerful than many people think - especially when enemies stack tons of health or you're playing champion with passive AS boost(Xin, Olaf, Noc).
Also, notice that Tear of the Godness doesn't stack with Archangel's Staff, so "trick" you proposed will not work.(I think it's bad, too ;p)
Ending - guide is really good and despite the fact I don't agree with some of your opinions, it deserves for upvote.
I agree with what you are saying, that each stat has that linear function. It is often true, but yet, my plan in this was (which I tried to clarify) to look at items that give HP (for instance), because those are the items you'd be looking for as a tank. As stated, you buy more combined stats, but yet, one usually looks for one particular stat. In the example of Banshee's Veil, I think I clearly showed that it is an expensive item for both MR and health. As a tank, you would buy other items instead of this, and rather go for Quicksilver Sash and Warmog's or what ever.
I also tried to be clear on "be sceptical about the numbers". They tell a certain truth, but not the whole truth. You need to consider their extra stats, as well as their passives. This isn't an exact guide, but something to give some ideas. Just by the fact that you thought about it, and calculated some things yourself, means the guide was successful. ^^
I disagree. The passive on madred's bloodrazor is extremely strong on a non-crit build. It scales amazingly with enemy health and attack speed. Against a 2250 health enemy champion, you deal 90 damage per autoattack. That's two
My sheet is sitting in Google docs here. I haven't color-code or sorted it at all, yet, so it's a little hard to read. I've highlighted the most important column, the comparison of cost and value, in light gray. Numbers above zero are usually bad, they mean that the cost of the item is higher than my calculated value of its stats, but the other effects it grants (passives, actives, cooldown reduction, move speed) might still make it worth while. Numbers below zero are good, they mean that the item costs less than the calculated value of its stats; if an item with a number below zero also has other effects, it's probably godly.
Second, I don't really think your idea for pricing items, at the bottom of the guide, would be terribly effective. For one thing, using the square of the stat amount to calculate price makes items with higher stats hugely more expensive. This would mean that to get good stats in the early game, a champion would need to stack several cheaper items. Then, in the late game, champions would start selling some of their items to get ones with better stats. This would fundamentally change how the game is played, and would require a complete overhaul of the item system in order for champions to still have access to some decent passives and actives in the mid game. It'd also extend game length, if item prices become higher or stat values on items become lower.
For another thing, there aren't any stats that give increasing returns per point, where your item formula gives increasing costs per point. Every stat gives either linear returns (like AD and AP) or diminishing returns (like MR and armor). This doesn't quite add up in my head.
Finally, I notice two minor typos above. You need to fix the names of
+1
And now make it more appealing to read please :)