ISO

Isolated Power (ISO) is a measure of a hitter’s raw power. Or, to look at it another way, it measures how good a player is at hitting for extra bases. The simplest way to calculate ISO is to subtract a player’s Batting Average from their Slugging Percentage, which leaves us with a measure of just a player’s extra bases per at bat.

If you prefer, you can also calculate ISO this way:

ISO = ((2B) + (2*3B) + (3*HR)) / AB
ISO = Extra Bases / At-Bats 

It takes a long time for a player’s ISO to have predictive power going forward; a sample size of 550 plate appearances is recommended to draw any conclusions. In other words, if Albert Pujols has a .550 ISO two weeks into the season, it’s way too early to expect that to continue.

Context:

Please note that the following chart is meant as an estimate, and that league-average ISO varies on a year-by-year basis. To see the league-average ISO for every year from 1901 to the present, check the FanGraphs leaderboards.

Rating ISO
Excellent 0.250
Great 0.200
Above Average 0.180
Average 0.145
Below Average 0.120
Poor 0.100
Awful 0.080

Links for Further Reading:

Power Factor v. Isolated Power – Walk Like a Sabermetrician

PECOTA’s ISO – Baseball Prospectus