Parlay betting has become increasingly popular among sports bettors as it provides the potential for high payouts with relatively low stakes. A parlay bet is a single wager that combines two or more individual bets, all of which must win for the parlay bet to be successful. The more bets you include in your parlay, the higher the payout—but also the more challenging to win.

In this article, we will discuss how to calculate parlay odds, so you can better understand your potential winnings and make informed decisions when placing your bets.

Step 1: Understand How Odds Work

Before diving into parlay calculations, it’s crucial to understand how odds work. There are two main types of odds: Moneyline and Point Spread.

Moneyline odds represent the probability of a team winning outright, without considering any specific margin of victory. In moneyline betting, positive odds indicate an underdog while negative odds indicate a favored team.

Point Spread odds focus on the margin of victory (or defeat) and are set by bookmakers to create balanced betting action on both sides. The favored team is typically assigned a negative point spread while the underdog receives a positive spread.

Step 2: Convert Odds to Decimal Format

To easily calculate parlay odds, it’s necessary first to convert them from their traditional format (moneyline or point spread) into decimal format. Here’s how:

– For plus moneyline odds (i.e., +150), divide the odds by 100 and then add 1.

– For minus moneyline odds (i.e., -200), divide 100 by the absolute value of the odds and then add one.

– For point spread bets at standard -110 odds, simply use a decimal value of 1.91 for both sides.

For example:

Team A (+150) will have a decimal odd of (150/100) + 1 = 2.50

Team B (-200) will have a decimal odd of (100/200) + 1 = 1.50

Step 3: Multiply Decimal Odds Together

Once you’ve converted all your bets into decimal format, simply multiply the decimal odds together to calculate the combined parlay odds.

Example: Let’s consider a 3-team parlay with the following bets:

Team A Moneyline @+150 (2.50 decimal)

Team B Point Spread -4 @-110 (1.91 decimal)

Team C Moneyline @-200 (1.50 decimal)

Parlay odds = 2.50 x 1.91 x 1.50 = 7.19

Step 4: Calculate Potential Payout

Finally, to calculate your potential payout, simply multiply the combined parlay odds by your stake.

Example: If you were to bet $100 on the same 3-team parlay from above:

Potential payout = $100 * 7.19 = $719

It’s important to remember that this amount includes your initial stake—an actual profit of $619 in this case.

Conclusion

Calculating parlay odds is an essential skill for anyone who wants to take their sports betting game to another level. With this knowledge, you can more easily compare potential payouts, determine which bets offer the best value, and ultimately increase your success and enjoyment in the world of parlay betting. Good luck!