The odds are what makes sports betting what it is. Without the odds, there would be no way for bettors to make a profit from their wagers and without the proper understanding of how it works and how to calculate sports betting payouts, no bettor could place a strategic wager.
We'll be covering how you calculate payouts depending on the odds given to you.
Calculating Sports Betting Payouts of Decimal Odds Bets
Decimal odds; often also called European odds (because of the region they are most popularly used), digital odds, or continental odds, are what most bettors consider the easiest to read and understand when it comes to calculating your payout.
Consider the following example between Team Red and Team Blue in a game with decimal odds, where the numbers are:
- Team Blue - 1.50
- Team Red - 4.50
In this example, Team Blue is the favorite as they have the lower numbers in the odds. In the same sense, that would make Team Red the underdog as they have the higher number of odds.
When it comes to payout calculation, all you need to do is to multiply the amount you wagered to the odds of the team you placed your bet on, regardless of whether they are the favorite or the underdog.
For example, if you bet $10 on Team Bleu and won, you'll get a total payout of $15 ($10*1.50), which means you get a net profit of $5.
Calculating Sports Betting Payouts of Fractional Odds Bets
Fractional odds, also called UK odds (as it is most commonly used in the United Kingdom and in Ireland), are one of the oldest forms of odds used in sports betting and were first used in horse racing betting.
When reading fractional odds, always keep in mind that it shows the amount you need to wager to win a certain amount.
The numerator (the number on the left) tells you how much you can win while the denominator (the number on the right) tells you how much you need to wager to win the amount the numerator tells you.
For a better understanding, consider another match by Team Blue and Team Red as an example, where the odds are:
- Team Blue - 4/6
- Team Red - 6/5
Any easy way to calculate payout is if you wager an amount that is a multiple of the denominator. So, if you placed a bet of $50 on Team Red and they won the match, you get a payout of $110, which is $60 in profit plus your original bet of $50 back.
Let's say you wagered an odd number which is not the multiple of the denominator. In this example, consider that you bet with $21 on Team Red, and they won. To calculate your payout, divide the amount wagered by the denominator, multiply it by the denominator, and add the staked amount again. Thus:
[($21/5)*6)]+21 = $46.2 total payout.
Calculating Sports Betting Payouts of American/Moneyline Odds Bets
Moneyline odds are most popularly used in sports played in the US, such as the NBA, the NFL, or MLB. It is also used for any game played outside the US but where the betting is for Americans.
American or Moneyline odds are about winning in multiples of $100. You would have to stake an amount based on the odds presented in order to win $100. To better understand this, take another match between Teams Blue and Red as an example, where the odds are:
- Team Blue: -250
- Team Red: +200
In this example, Blue is the favorite, denoted by a minus (-) sign. Red is the underdog, denoted by a plus (+) sign. If you bet on the favorite, the odds would mean the amount you need to wager to make a $100 profit - in this case, $250. On the other hand, the odds show your total profit if you were to bet $100 - in this case, $200. The same can be applied to totals wagers. When comparing payout calculations with totals vs moneyline bets, both are still easy to understand since both uses the concept of an underdog and favorite.
Calculating Sports Betting Payouts of Malaysian Odds Bets
Malaysian odds, as its name implies, is used when you are betting in Malaysia. This type of odds is mostly used when betting on soccer games, which is a popular choice of sports to bet on in the country.
In this type of odds, consider another match between Teams Blue and Red, where Blue is the favorite and with two possible outcomes, thus:
- Blue beats Red: +0.4
- Red beats Blue: -0.25
If you wagered $100 on Blue and won, you can compute your payout simply by multiplying it with the odds, thus:
$100 x 0.4 = $40 in profit.
If you bet $100 on Red and won, you compute the payout with this formula:
(1/Malay odds without the negative sign) x amount wagered = your profit
(1/0.25) x 100 = $40 in profit
Calculating Sports Betting Payouts of Hong Kong Odds Bets
As its name says, this odds system is most commonly used in sports betting in Hong Kong, where the most popular choices include betting on soccer and horse racing. Though they may do things a little differently than in other countries, it is still fairly easy to understand how to calculate payout and profits for every wager.
Consider an ice-hockey match between Blue and Red, where Red is expected to beat Blue at an odds of 0.4.
To calculate your payout for a bet of $100, simply follow the formula:
Wager x (1+odds)
100 x 1.4 = $140 total payout
To calculate your profits only, simply follow the formula:
Wager x odds
Thus, in the example:
100 x 0.4 = $40 net profit
Calculating Sports Betting Payouts of Indonesian Odds Bets
Indonesian odds can be likened to American odds. The only difference is in Indonesian odds, the numbers are divided by a hundred, thus an American odds of 150 would be 1.50 in Indonesian odds. The number presented to you is the amount you need to risk to win one unit in profit.
To better understand how it works, take into consideration a basketball match between Blue and Red where Blue is a favorite to win with an odds of 1.15.
If you want to make a profit of $100, you need to wager an amount of $115 and win the bet.
Now, consider turning the tables around and bet on the underdog Red with an odds of 2.10. In this case, you can expect 2.10 units for each unit you risk. Thus, if you wager $100 and won the bet, you take a payout of $210 and thus a profit of $110.
Calculating Sports Betting Payouts of Implied Probability Bets
In sports betting, the implied probability is a conversion of the odds into a percentage, taking into account the margin of profit that the sportsbook has added in. Computing this can help you decide on the value of the bet and see if the house edge, of the vigorish, feels reasonable for you or not.
To better understand this, take for example a rugby match with a spread decimal odds of:
- Blue: -3.5 for 1.91
- Red : +3.5 for 1.91
A $110 on either side would mean a $210 payout since we will multiply the wagered amount by the odds given. From here, you can calculate the implied probability by dividing the amount risked by the total payout, and multiplying it by a hundred, thus:
- Blue: 110/210 = 52.4%
- Red: 110/210 = 52.4%
Notice how it goes over 100. The excess is the vigorish the bookies get to take home is the percentage that is over 100 - in this case, 4.8%
Importance of Comparing Sports Betting Odds
In sports betting, it is just as important to shop around for the best odds and lines as it is when you shop around for the best deals when shopping online. Line shopping refers to checking with multiple bookies to see which one offers the best value depending on the odds and lines they have. Comparing the lines allow you to see which sportsbook site has the best ROI for your wagers.
Back in the day, this can be a huge chore as you would most likely need to move from one betting place to another to check what odds they offer. However, thanks to the rise of sports betting apps and sites such as Oddschecker, all it takes to do some line shopping is a click or a tap on your device.
One factor most people consider when line shopping is a comparison between house edges or the vig. For most people, they would naturally go with a bookie that takes less commission for every bet as this means punters get to have more value for their wagers.
Another thing to consider is the possibility of any bonuses offered to you. A lot of online sportsbooks offer bonuses like deposit bonuses, free bets for every number of bets played, and the like. Sometimes, bettors choose a bookie even if the house gets more vig from the bets, but offers enticing freebies and bonuses.
Calculating Sports Betting Payouts: FAQ
Here are some answers to the most common questions about sports betting payouts:
How are decimal odds different from fractional odds?
Fractional and decimals odds only differ in how they are presented, decimal odds are displayed as a single number whereas fractional odds are displayed as one number over another e.g. 3/5.
Which country uses decimal odds?
Countries in Europe use decimal odds, as well as Australia and Canada. Some football games are often presented in decimal odds.
Why are all American odds set at more than 100?
This is because payouts in American odds are always calculated in the hundreds, which is why odds are always presented with a baseline of 100.
Can you convert American odds to decimal odds?
You can convert any format of odds to another format, including American odds to decimal odds. To make it easier, there is a tool that automatically converts odds to different formats for you.
Is it worth knowing how to calculate the payouts of various sports betting odds?
It is worth your time to learn as doing this can help you to fine-tune your line shopping or get the most value out of your bets.
Knowing how to calculate sports betting payouts is an important thing to learn in sports betting. It can help you decide the value of your bet and help you formulate a better betting strategy.
This article was published on January 19, 2022, and last updated on July 13, 2022.