How to calculate betting odds
Understanding how to calculate betting odds is essential for anyone interested in sports betting. Knowing how odds work and how to convert them into implied probability allows you to make more informed decisions when placing bets. In this article, we’ll go over the basics of calculating betting odds and provide examples using various formats.
1. Understand the Types of Betting Odds
There are three main types of betting odds that you may encounter:
a) Decimal Odds: Decimal odds are widely used, especially in Europe, Canada, and Australia. They represent the total return you will receive on a successful bet, including your stake. For example, if you bet $100 at 1.50 odds, you will profit $50 (150% return).
b) Fractional Odds: Primarily used in the UK and Ireland, fractional odds show the potential profit for each unit staked. For example, 3/2 odds mean that you would profit 3 units for every 2 units wagered.
c) American Odds: Used primarily in the United States, American odds can be either positive or negative numbers. Positive odds show the potential profit on a $100 bet, while negative odds indicate the amount you must wager to win $100.
2. Converting Different Betting Odds Formats
It’s crucial to be able to convert between different betting odds formats easily. Here’s how:
a) Decimal to Fractional: Subtract one from the decimal odds and then convert the result into a fraction.
Example: Decimal = 1.75
(1.75 – 1) = 0.75
Fractional = 3/4
b) Fractional to Decimal: Divide the numerator by the denominator and add one.
Example: Fractional = 3/4
(3 ÷ 4) + 1 = 1.75
Decimal = 1.75
c) American to Decimal: For positive odds, divide by 100 and add one. For negative odds, divide 100 by the absolute value of the odds and add one.
Example: American = +120
(120 ÷ 100) + 1 = 2.20
Decimal = 2.20
Example: American = -200
(100 ÷ |200|) + 1 = 1.50
Decimal = 1.50
3. Calculating Implied Probability
Converting odds to implied probability gives you the percentage chance of an outcome happening. This can help you evaluate whether a bet offers value.
a) Decimal Odds: Implied Probability = 1 ÷ Decimal Odds
Example: Decimal = 1.75
1 ÷ 1.75 ≈ 0.5714 or 57.14%
b) Fractional Odds: Implied Probability = Denominator ÷ (Denominator + Numerator)
Example: Fractional = 3/4
(4 ÷ (3+4)) ≈ 0.5714 or 57.14%
c) American Odds: For positive odds, divide the absolute value by (absolute value + 100). For negative odds, divide by (odds minus 100).
Example: American = +120
|(120) ÷ (120+100)| ≈ 0.4545 or 45.45%
Example: American = -200
200 ÷ (200-100) ≈ .6667 or 66.67%
Calculating betting odds and converting them into implied probability will help you make more informed decisions when placing bets. Practice using various formats and applying these methods to improve your sports betting skills and increase your chances of success!