Equity calculation is crucial in poker because it helps players make informed decisions by understanding their chances of winning a hand. By estimating the probability of their hand holding up against opponents’ ranges, players can determine whether to call, raise, or fold in various situations. It also plays a key role in bankroll management and long-term profitability, ensuring that decisions are based on mathematical advantage rather than emotion. Mastering equity allows players to navigate complex scenarios, maximize value, and minimize losses over time.