How to Calculate Betting Odds
- 1 What Are Betting Odds
- 2 Comparing Different Types of Odds
- 3 How Can You Calculate Your Betting Odds and Payouts?
- 4 How to Calculate Sports Betting Odds Payouts
- 5 Converting Odds to Implied Probabilities
- 6 Examples of Betting Types to Calculate Potential Earnings and Betting Odds Payout
- 7 How to Bet on Sports for the Best Payout Odds
- 8 In Conclusion
It’s not important whether you are a beginner in sports betting or you already know your way around it. Not everyone understands odds in betting, especially the beginners. However, you would be surprised how many bettors don’t know the math behind odds.
Betting on sports is not based on luck. That’s the first stereotype we need to break. Betting is based on statistics and experienced bettors know that. One of the most important things for you to learn is how to calculate betting odds.
The first step in this guide is to teach you one of the simplest, yet also one of the most important things: what are the odds? What does that number tell you? What does it mean?
As we have said before, betting is based on statistics. In that way, odds are a statistical parameter that tells you the likelihood of one specific event happening. By multiplying the odds with your steak you will get the number representing the amount of money you would win if you won the bet.
To clarify, there are different ways of representing odds. Americans use one system and various bookmakers use either fractional or decimal odds. It’s important to mention that these odds are not different – you will get the same amount of money – they are only symbolised differently.
We’ll explain every type of odds in detail and emphasise how good knowledge of odds can take your betting skills to the next level. Read on for extra tips and tricks on how to find a balance between odds and value.
What Are Betting Odds
You already know there are American, decimal and fractional odds. But what’s the difference?
- American odds – usually you will find them if you bet on American sports betting sites. What you should pay attention to is the sign before the number (for example -150, or +200). What does the sign mean? It implicates the favourite and the underdog. If odds are -150 on Team A, that means this team is the favourite. The plus sign is usually there to symbolise the underdog.
For you to understand this better, because we know how complicated it must seem (especially if you haven’t come across it before), we have prepared a formula. It will help you calculate the payout based on odds and steak.
- For negative odds (e.g. -150) formula is (100/odds) X Steak = Profit
Speaking of this example, if you invest $100, you will get $66 of pure profit.
- For positive odds (e.g. +150) formula is Odds X (Stake/100)
In this example, your profit would be 150 dollars.
Americans decided to spice it up even more! They added points spread next to some teams in various sports. If the odds are for example -160 (+4) for TEAM A, they will not only have to win but to win with at least 4 points difference. Only then your bet will be successful.
- Decimal Odds – they are commonly used throughout Europe. However, you may come across decimal odds even on the US sports betting websites. This type of odds is pretty easy to understand.
For example, the odds for Real Madrid to win are 1.5. What does that mean for you? By multiplying your stake with the odds (e.g. $100 x 1.5) you will get the amount of the payout. Pay attention to the difference between decimal odds and American odds. In American odds, you get only the amount of PROFIT. When it comes to decimal odds, you get the amount of your stake and profit combined.
You won’t know how to calculate odds in betting if you don’t get to known anything about fractional odds. We feel especially generous today, so read on!
- Fractional Odds – used mainly in the UK, fractional odds can rarely be found in the US. However, to be an expert in sports betting, you need to know them all! They are far easier to understand than American odds and slightly easier than decimal odds.
For you to better understand, we have prepared an example:
If odds are 1/1, that means you will get a $20 return for a $10 winning bet. Formula is the following: ((Stake / Denominator) x Numerator) + STAKE = PAYOUT
- If your stake is $10 and odds are 4/1 the payout will be ((10 / 1) x 4) + 10 = $50.
Congrats! If you have come this far, now you are officially THE MASTER OF ODDS. Let’s dive deeper into turning knowledge of odds to your advantage.
Comparing Different Types of Odds
We have already said that odds are just represented differently, but they all have the same meaning. That basically means that every odd in one system has its equivalent in another.
If you love to bet, it will be useful for you to learn how to convert odds from one system to another.
This is especially useful when betting on various sports betting websites. Even though on 4rabet.com you will find the highest odds and useful insights from the world of betting, we’ll still explain to you how to convert odds.
|DECIMAL ODDS TO:|
|FRACTIONAL = (decimal odds-1) and round to the nearest integer||AMERICAN = (decimal – 1) x 100 = American odds|
|NEGATIVE AMERICAN ODDS TO:|
|DECIMAL = (100/ American odds) + 1||FRACTIONAL = (100/American odds) then reduce to its simplest form|
|POSITIVE AMERICAN ODDS TO:|
|DECIMAL = (American odds/100) +1||FRACTIONAL = (American odds/100) then reduce to its simplest form|
|FRACTIONAL ODDS TO:|
|DECIMAL = (numerator/denominator) + 1||AMERICAN = Convert fraction to decimal x 100|
There are countless websites for you to place a bet. Because there are a wide variety of choices, it’s hard to choose the right one. We at 4rabet.com make sure to provide you with the best sports betting experience, the highest odds and the greatest payout. Your satisfaction is something we care deeply about. That’s why we take pride in providing you with the latest news and the most useful information in the sports betting industry! Now that we have taught you all of this, read on to learn brutal tips and tricks related to odds.
How Can You Calculate Your Betting Odds and Payouts?
After learning more about odds and practicing calculating them, you will become an expert in sports betting. Our strategy, knowledge and practical implementation of that knowledge are fail-proof. Why wouldn’t your bets become fail-proof as well?
Finding out the precise number for odds and payout is essential if you want to win big! If you are still skeptical and think betting is based purely on luck, this information will change your mind. To place a winning bet, you need to have knowledge and skills. That’s exactly what we will give you. Your skills will become a powerful asset on your way to place many winning bets. How to enhance your skills?
By reading this article, you are halfway down that road. Our strategies are revolutionary and based on statistics. That’s how we can help you enhance your skills and expand your knowledge.
The most important thing you should keep in mind is that ODDS and PROBABILITY are not the same things.
- Probability – it shows us how likely something is to happen. How many times? In order to really understand that, tell us what is the probability of getting card 7 HEARTS out of a deck of cards? The solution will be at the end of this article, but for sake of you becoming a betting expert, try to solve it yourself!
- Odds – bookmakers use them in order to simplify the probability and represent the chance of something happening.
How to Calculate Sports Betting Odds Payouts
Okay, but how do I know what will be my profit when I place a bet? To calculate your payout, you need to multiply the decimal odds by your stake. If the odds are 5.2 and your stake is $10, you will get 52 dollars as a payout. Pure profit is calculated when you subtract your stake from the payout. In this case, it would be $52 – $10 = $42.
When it comes to fractional odds, calculating the payout is somewhat more complex. If the odds are 5/1, your PROFIT for a 10-dollar stake would be $50. You will also get your stake returned.
To calculate the payout for American odds, you need to use the formula we have given you. If the odds are -150, it means you will get 6.6 dollars profit when your stake is $10. Of course, your stake is returned and the total payout would be $16.6.
Converting Odds to Implied Probabilities
As we have promised, we will show you how to find bets worth placing. Bets that have real value. You already know by now that betting is based on statistics. We’ll explain this statement thoroughly in this chapter. By now you have also learned that odds are not the same thing as probability. However, odds depend on probability a lot! How can you calculate the probability of something happening? How can you know whether the bet has actual value and is worth pursuing?
To help you understand this, we have prepared yet another formula… This is the last one, we promise!
To convert odds to implied probabilities, you only have to divide your stake by the total payout. We have taught you how to calculate the payout, so that’s not a problem for you anymore!
The formula looks like this:
IMPLIED PROBABILITY = STAKE / PAYOUT
It means that if your stake is $10 and the payout is $100, the implied probability would be?
Well done! It’s 0.1, of course! Remember that probability can only range from 0 to 1. If you want to get the percentage, just multiply it by 100! Not only are you MASTER OF ODDS, but you also are a killer bettor now!
However, that’s not all…
We have also prepared more examples for you, this time with the best bets to place and some tips and tricks as well.
Examples of Betting Types to Calculate Potential Earnings and Betting Odds Payout
Bettors enjoy these bets the most:
- Over/under – your job is to guess whether the total number of scored points will be over or under a certain number.
- Outright bets – you have to guess the player/team that will win the whole competition
- Head-to-head – this bet is among the most common ones because you only have to guess the winner of the match.
- The first scorer – guess who will score the first goal and win!
How to Bet on Sports for the Best Payout Odds
The major goal of most bettors is to make extra money by guessing the outcome. Football is one of the most common sports people decide to bet on. However, on our website 4rabet.com you can bet on any sport you can think of!
To get the real chance of winning big, avoid the mistakes bettors usually make!
- Overconfidence – don’t risk more when you win, you are likely to lose everything. Instead, play wisely! You can learn more about wise betting by reading our articles!
- Don’t follow trends – analysing the previous result of a team is great, but don’t bet on them just because they have won a couple of matches. Instead, analyse other important aspects we have talked about!
- Many bets – by placing many bets you decrease your chances of winning. Why would you do that? Choose several games and analyse the teams thoroughly!
- Calculate implied possibilities – those people who think betting is based on luck dream about getting rich quickly. You know that betting requires skills you are enhancing now. To get the best value, you need to calculate implied possibilities. Everything above 0.55 (55%) is HIGHLY VALUABLE!
As we have promised, here is the solution to the task: the probability of getting the card 7 HEARTS is 0.02. Have you guessed it?
This is calculated by dividing the total amount of cards by 1 (because there is only one card 7 hearts). Probability = the number of chosen outcomes / the number of total possible outcomes.
We hope that after reading this, you won’t ask yourself how to calculate betting odds ever again! Because you now know everything there is to know about odds and payout, it’s time to put your unleashed sports betting potential to good use!