Odds (sometimes called price) are numbers which are used to calculate how much money we win with our stake on a certain event. Rule is higher the odds for a given outcome less the probability of that outcome. Odds are just probability percentages converted in numbers. Three formats of odds are widely used. European (decimal), British (fractions) or American (whole) format. Some bookmakers support more than one format. Conversion between formats is possible.

Odds formats

Here is example of how odds are presented in different formats. We are comparing odds for a soccer match between Brazil and England, with Brazil being the favorite and England the underdog.

EXAMPLE EVENT: Brazil Vs England

                European   British  American 

Brazil (1):      1.40       2/5      -250 

Draw (X):        3.75      11/4      +275 

England (2):     5.00       4/1      +400 

     

Now let's make some calculations to better explain odds formats. It is important to distinguish between payout to betting account and winning. Payout is total amount of money won together with stake and winnings are real money won, or payout minus our stake.


We bet 100$ or Brazil.

European Odds (decimal)

We calculate payout by multiplying stake with odds offered. The odds show how many units bookie pays out for one unit staked. To make it simple European odds show us total amount of money we win together with our stake. In this case it's 100$ x 1.40 = 140$.

British Odds (fractions)

British odds show winnings, or how much money we win minus our stake. 100$ x 2/5 (0.4) = 40$. We see that with 100$ betted on Brazil we earn extra 40$.

American Odds (whole)

American odds are divided in negative and positive odds. Like British odds they show us our winnings not the payout. Negative odds show how big stake is needed for a winning of 100 units, when betting on favourite. Positive odds show how winnings are if we bet 100 units on underdog.
Negative Odds (necessary stake for a winning of 100 units):

Example: Home win to Brazil over England, US odds -250

Stake x (100/US odds)

100$ x (100/250) = 40$

Notice that the negative sign in front of the odds is changed in the calculation. The number has to be positive.

Positive Odds (winning with a stake of 100 units):

Example: Draw in Brazil vs. England, US odds +275

Winning: Stake x (US odds/100)

100$ x (275/100) = 275$