How Do Odds Work?

Fractional odds are similar to American odds in that they tell you the potential profit you stand to earn, as opposed to the potential return.Once again, you can simply multiply the amount you would like to wager by the fraction in order to calculate your potential return. Fractional odds are widely used in the UK, but they are also the most common odds format on U.S. horse racing. You can simply multiply the amount you would like to wager by that figure to calculate your potential return if the bet pays off.A $20 wager on the reds at 2.40 would result in a return of $48, which includes your $28 profit and the return of your $20 risk amount. In that case, a $20 bet on the Reds would earn you a $12.50 profit, whereas a $20 bet on the Pirates would earn you a $28 profit. If you see a plus symbol, it tells you the potential profit you stand to earn from a $100 bet.

• U.S. odds can either start with a plus sign (positive odds) or a minus sign (negative odds).
• That means the outcome is uncertain, and research becomes even more important.
• To go into further detail about the premise of an implied probability calculator, you first need to understand the concept of implied probability.
• Accumulator Calculator – In the UK, the parlay bet is known as an accumulator.

The reason for this is that a betting record is not simply about being able to check at a glance whether you are in profit or making probability calculator a loss for the year. If you made the same wager at decimal odds, you would be quoted a figure of 4.0 rather than 3/1. The decimal equivalent would be 4.0 and, in this case, multiplying your stake by the odds shows your total return. For example, if a team is available to bet at 3/1, you can multiply your stake by the first number to calculate your profit. The advantage of decimal odds is that they enable more precision in setting a price and are also more straightforward to understand.

Betting Odds Explained: Beginners Guide to Understanding Betting Odds – January 2026

There are different types of odds formats used in sports betting, including decimal odds, fractional odds, and American odds. While both types of odds can be used to express the same price, the main difference is that decimal odds focus on the total return you could receive if your bet wins, while with fractional odds, it is easier to calculate your profit. This type of odds comes from the United Kingdom, and you will still find it employed in many sports betting markets, though across Europe, decimal odds are more popular than fractional.

This would be 4/6 in the fractional format or 1.66 in the decimal format. If a horse is priced at 7/2 to win a race and you want to bet $10 on him, you can multiply $10 by 7/2 to calculate your potential profit if successful. You get your stake (risk amount) back when your bet wins, so your total return would be $210.You do not actually need to bet $100.

How To Convert Decimal Odds To Percentage Chance

Odds-on is a phrase that simply implies that the chosen market will pay out less than double the amount of your stake if it is a winner. The list of bookmakers on these sites is not exhaustive, but there are many included on the best sites and this is the quickest and most effective way to ensure you get the best price for your bet. If you were to bet £10 on that outcome, you would gain £20 more in returns at the price of 7/1, compared to 5/1. And when online betting, you can take advantage of these differences to make sure you get the best price on offer. The reason for this is simply that despite bookmakers’ odds being similar for most markets, sometimes when individual bookmakers calculate odds, they will offer different prices. Many bookmakers still employ one or more people to oversee this process and they may make small adjustments to the odds to make their book balance, or to offer customers a special deal on a selection or similar.

It can be helpful for Asian bettors to understand western formats, and vice versa. Many people find that decimal wagering odds are actually a lot easier to understand than U.S. odds. Europeans generally prefer to use the decimal format too, and it is commonly used for soccer picks. However, many Canadians prefer to use the decimal format, so you may see hockey picks in the decimal format. This leaves you with an implied probability of success of 52.38%. In general, the book % at Betfair will be slightly more than 100% on the back side and slightly less than 100% on the lay side, meaning that you can neither back all or lay all outcomes for a profit.