How Do Decimal Odds Work

Anyone new to sports betting will have a big decision to make straight away about the odds format they want to use. Selecting an odds format is usually based on personal preference. However, that preference is largely determined by how easy the odds format is to understand.

Many punters consider decimal odds to be the easiest betting odds conversion format. It is easy to understand how decimal odds work compared to the complex American odds system or traditional fractional odds. In fact, many bettors around the world are turning to decimals today. It is claimed that decimals are the most used odds format worldwide. If you use decimal odds to wager on sports, you may want to change.

So, how do decimal odds work? Let's take a deep dive into the world of decimal odds to explore how they are used and how to read them.

Decimal odds are sometimes called European odds. Many bettors in European countries prefer to use them, and younger bettors have turned to them due to their simplicity.

Often, fractional odds are preferred in the United Kingdom and Ireland, while American odds are used in North America. These regions all have their preference for how odds are displayed. You will likely find decimals in other countries, including Australia and Canada.

Punters in these countries prefer decimal odds due to their simplicity. Decimal odds represent the money you win for every £1 wagered. The decimal number displays the total payout rather than just the profit. The stake the bookmaker gives back following a winning bet is calculated in the example below.

How do you read Decimal odds?

Understanding decimal odds is easy; this example will help you grow your knowledge.

Let's look at an example from the English Premier League.

Manchester City 1.3

Liverpool 3.00

If you wager £1 on Liverpool, the underdog in this example, your potential returns would be £3. The returns include the stake, so the profit would be £2.

A wager of £1 on Manchester City at odds of 1.3 would return £1.30 in total payout. The payout includes your £1 stake and £0.30 in profit.

How Do You Convert Decimal Odds into Potential Winnings?

The formula for decimal odds is as follows:

Stake x Decimal Odd Number = Total payout (stake + profits)

Due to the simplicity, many bettors love using decimal odds to bet on sports.

Do Decimal Odds Calculate Probability?

You can calculate implied probability using decimal odds. Using the equation below, you can also convert odds from decimal odds to probability for better insight into a potential bet.

(1/ decimal odds) x 100 = probability

For example, using our Manchester City versus Liverpool situation from above. If we want to calculate the probability of Liverpool winning the match, it would look like this:

(1 / 3.00) x 100 = 33.3%

There are various betting odds formats available. Online betting sites allow you to select the odds display you prefer. In some cases, the odds format you use is a personal preference.

Some more complex odds methods may take some time to learn, but decimal odds are arguably the easiest to use.

What's the Difference Between Fractional Odds and Decimal Odds?

Fractional and decimal odds are popular in the UK and Europe. Fractional odds is a ratio of the profits won compared to the amount staked. For example, odds of 2/1 means you will win £2 in profits on a £1 bet.

Fractional Odds or Decimal odds?

Fractional odds can be difficult to understand. However, many punters still use fractionals as a traditional way to express the price of sporting events. One of the great aspects of fractional odds is it tells you the profit you will receive on a winning a bet.

The decimal format expresses the total payout (profits plus stake). Therefore, you must subtract the initial stake to understand the full profit you made on a wager.

How Do You Convert Decimal Odds into Fractional Odds?

Converting fractional odds to decimal odds is simple. Just divide the top number by the bottom number and add one. For example, if you have the odds of 2/1, just divide 2 by 1 and add 1.

(2/1) +1 = 3.00

What's The Difference Between Decimal Odds and American Odds?

American odds are far more complex than decimal odds. American odds are based on winning or wagering £100 on a bet. The odds are represented by a plus (+) or minus (-) sign. The plus and minus signs indicate which team is the favourite and the underdog.

For example:

Green Bay Packers -120

New York Giants +300

The minus sign indicates the Packers are the favourite. If you wager on the Packers to win, you must bet £120 to make £100.

The plus sign shows us that the Giants are the underdogs. A £100 wager on the Giants to win would result in a £300 profit if they win.

What is Moneyline odds?

Moneyline odds are the same as American odds. Some punters and bookmakers often use the two terms interchangeably.

How Do You Convert Decimal Odds into American Odds?

To convert decimal to American odds on the underdog (+ sign): (American odds / 100) + 1 = decimal odds.

To convert decimal to American odds on the favourite (- sign): 1 - (100 / - American odds) = decimal odds.

What is the Difference Between Decimal Odds and Implied Probability?

Decimal odds display a simple value that can be multiplied by your bet amount to calculate the potential profit and overall return.

Implied probability, also known as implied odds, explains what the bookmaker expects the outcome of an event to be.

For fractionals: denominator / (denominator + numerator) x 100 = probability

How Do You Convert Decimal Odds Into Implied Probability?

To convert decimal odds into implied probability, use the following equation.

(1/ decimal odds) x 100 = probability

For example, using the above example on Manchester City (1.3) versus Liverpool (3.00):

(1/3.00) x 100 = 33.3%

Which Countries Use Decimal Odds?

Decimal odds are popular throughout mainland Europe. The odds format is often known as European odds. Australia, Canada, and New Zealand also use decimal odds.

Displaying odds in this format makes it simple to understand how much you will earn from a bet of just £1. The simplicity is why punters use decimal odds rather than convert fractional odds (traditional odds) or American odds.

Do Betting Sites Give you the Option to Use Decimal Odds?

Sports betting websites offer the chance to change the odds display. Bookmakers want you to use the most comfortable display, so you can go to the settings and change to the odds display format of your choice.

There is no best or worst odds format. However, decimal odds work perfectly for anyone wanting a simple, straight-to-the-point method of knowing how much money they will receive for a winning bet. Decimal odds also display the total payout of money staked and profits compared to fractionals, which are just the profits.

American odds are more difficult to understand compared to decimal odds. Therefore, many people may choose decimal format over American odds. Punters must be familiar with American odds' intricacies and complexities before using them.

Decimal Odds In Sports Betting

Decimal odds take seconds to calculate the payout. In sports betting, seconds can mean everything when searching for the best odds. In-game betting odds can change quickly, and calculating the odds quickly is important.

The breakeven mark for decimal odds is 2.00. These odds will double your initial stake. Decimal odds lower than 2.00 are under even money odds. The potential payout will be less than your unit stake. If the odds exceed 2.00, your potential payout will exceed your stake.

Decimal odds are the world's most widely used betting odds format. As younger people begin to wager on sports, decimal odds are likely to grow.

Fractionals are the traditional method for doing bets and displaying prices, but newer bettors could favour the decimal format. Nearly all online bookmakers and betting exchanges offer odds in decimal format.

It may take a little time to get to grips with the format, but once you do, it will be a simple way to calculate your potential returns.