How Decimal Odds Work

• Decimal Odds In Sports Betting
• Understanding Decimal Odds
• Convert Decimal Odds To Implied Probability
• Calculating Winnings With Decimal Odds
• Decimal Vs Fractional Odds
• How Do You Convert Fractional Odds to Decimal Odds?
• Converting Decimal Odds To American Odds
• FAQs

Depending on what betting site you use to make your wagers, there may be a format of odds that you're unfamiliar with. The different types of odds formats used in gambling are American odds, fractional odds and decimal odds.

It seems overly complicated but in reality, it's simple to read decimal odds. This article will guide you on how to use the decimal odds format, and teach you the necessary formulas to convert them into other formats.

Decimal Odds In Sports Betting

Decimal odds in betting are largely seen in continental Europe, Australia and Canada. Fractional odds on the other hand are used in the UK and Ireland, and of course, American odds are used in the continental USA.

The odds format on online betting sites will likely be determined by where the company is based. That being said, many betting sites have the option for users to change the format.

Understanding Decimal Odds

There are a few things to note when you work with the decimal format. The first is that they are always positive numbers, unlike American odds which can have negative numbers. Second, they are decimal numbers with two decimal places.

To calculate the possible payout of a decimal odds bet, there is a simple formula to follow:

Payout = wager amount x odds

As per the above example: 1.80 odds with a £1 wager equals a £1.80 payout.

£1.80 = £1 x 1.80

When you're considering the odds between two teams, the lower decimal indicates that it is the team favoured to win and the higher decimal indicates the team predicted to lose.

When the odds of the two teams are close together in value, it means that they are evenly matched and it could go either way.

If the values are quite far apart (several whole numbers), it can indicate that it is an ill-matched pairing and that one team will likely dominate the game.

Convert Decimal Odds To Implied Probability

It is easy to convert decimal odds into implied probabilities. Implied probability is another way of saying the chances of a team winning a match.

To calculate the implied probability there is a simple formula to follow:

Implied probability = (1/odds) x 100

Scenario one: If Team A has 1.80 odds and Team B has 2.05 odds

Team A: 55.55% = (1/1.8) x 100

Team B: 48.78% = (1/2.05) x 100

Scenario two: If Team A has 1.20 odds and Team B has 3.20 odds

Team A: 83.33% = (1/1.20) x 100

Team B: 31.25% = (1/3.20) x 100

As you can see, the implied probability calculations show that Team A is the probable winner in both scenarios. However, scenario one is quite close and has the potential for the underdog to win the match. In scenario two, team A is the probable winner by far meaning that it would be more than a safe bet for sports bettors to place stakes on them.

Calculating Winnings With Decimal Odds

Decimal odds represent the total payout you would get if you were to win a bet. This means that the payout includes the amount you used to place the bet as well as the profit of a winning bet.

To calculate the winnings there is an easy formula to use:

Winnings = (wager amount x odds) - wager amount

As per the above example: 1.80 odds with a £1 wager equals £0.80 in winnings

£0.80 = ($1 x 1.8) - £1

Decimal Vs Fractional Odds

The best way to look at fractional odds is how much you will win as the numerator (top number) and how much you stake as the denominator (bottom number).

For example:

10/1 odds means winning £10 for every £1 you bet

1/10 odds means winning £1 for every £10 you bet

Any fractional odds over 1 is an underdog team while any fractional odds under 1 is the team that is favoured to win.

How Do You Convert Fractional Odds to Decimal Odds?

There is a way to convert a decimal format to a fractional format. Some people prefer to view the profit potential of a bet in decimal odds terms. In other words, they want to see the amount they can win for every £1 wagered. Fractional odds just provide a ratio of winnings.

To find the decimal odds from fractional odds, you need to divide the numerator by the denominator.

For example:

6/4 is a decimal odd of 1.5

4/6 is a decimal odd of 0.66

Converting Decimal Odds To American Odds

American odds seem a bit complicated because you're working with both positive odds and negative odds, but with some explaining, it becomes a bit clearer.

American odds are usually three or more digit whole numbers that can be either negative or positive (i.e -400 and +350). Negative numbers indicate the teams favoured to win and the positive numbers indicate underdog teams.

To convert them, there are two straightforward formulae to follow (depending on how large the decimal is):

Decimal odds between 1.01 and 1.99: American odds = -100/(odds - 1)

For example, 1.80 would be -125 = -100/(1.80 - 1)

Decimal odds of 2.0 or greater: American odds = (odds-1) x 100

For example, 3.20 would be 220 = (3.20 - 1) x 100

FAQs

Does it matter what odds format I use for sports betting?

No, it all depends on personal preference and what kind of information you're looking for when placing your wager. There are online odds conversion calculators and charts for quick reference.

What odds offer a net profit result?

Upon the calculation of the fractional odds to find the winnings, the answer will reveal the net profit of the bet. This is unlike the decimal odds which include the original stake amount in its answer.