Understanding Decimal Odds
Decimal odds take two seconds to calculate, they are simply your stake multiplied by the odds, which then equals your payout. A simple formula for decimal odds is:
Your Stake x Odds = Payout
Let’s look at a few examples.
Say you are backing Manchester United and Man U’s decimal odds to win are 1.82, if you wagered $100 your potential return on your bet would be $182. Remember that this counts your original stake of 100 dollars, so your net profit on a winning bet would be $82. The math looks like this:
Original Bet 100 x Decimal Odds 1.82 = Your Potential Winnings $182
Your potential net profit is $82, a stake of $100 and $82 in winnings. Let’s look at another example.
You are backing Tottenham, a big underdog in their match for $100 at 2.75 decimal odds. The math for your bet looks like this:
100 x 2.75 = 275
You are risking $100 to win $275 with the potential for a $175 net profit.
Just remember that when using decimal odds, your original stake is calculated into your potential winnings. When determining your potential net profit, always remember to account for your original stake.
The breakeven odds for decimal odds betting are 2.0, as these odds will simply double your stake. Decimal odds below 2.0 are less than even money odds, the potential return will be less than your stake. Odds above 2.0 will be plus odds, meaning your potential return will be more than your stake.
Decimal odds are also the most economical way to bet parlays, because the true odds will be calculated. Unlike traditional parlays which are calculated by the number of teams, parlays bets placed with decimal odds with give sports bettors the fairest and most accurate odds, maximizing their edge, so keep this in mind when using the best betting sites.
Decimal odds are the most widely used odds across continental Europe and continue to spread to other parts of the world. It is imperative for the modern day sports bettor to understand decimal odds, as they are used at many online books and betting exchanges.
Ready For More?
Decimal is one of many odds formats used by sports betting companies to present the likelihood of something happening or not happening. Decimal odds are always presented in decimal format and may have no, one, or two decimal places. For example, you may see decimal odds of 2, 2.0, or 2.00.
Easy - simply divide the fractions and add one. The one represents your stake. For instance, converting fractional odds of 7/2 into decimal odds would require you to divide 7 by 2 and add 1. This equals 4.5.
The equivalent of even odds (1/1) in decimal is 2.00. This simply means you are betting one unit to win one unit (1 + 1 = 2). For instance, a £100 bet at odds of 2.00 would return £200 (£100 in winnings + your £100 stake).
Fractional odds of 1/2 equal 1.50 in decimal odds. A line that is odds-on in decimal format will always be a decimal of 1. As fractional odds of 1/2 mean you will receive £1 for every £2 you bet, the decimal equivalent is 1.50 and the implied probability remains 66.7%.