How to Calculate Betting Odds
Every betting site uses betting odds, most players don’t understand how it works. And since the calculations seem automatic, many don’t care to know what it really entails. It becomes a problem when you register on international betting sites because the odds may seem different from what you are used to. However, if you know how to calculate it and the way it works, irrespective of the format, you will understand it.
If you are in the category of those who don’t have good knowledge of odds, we have you covered. This overview contains everything you need to know, including the calculations.
Relationship Between Betting Odds and Probability
Since probability relates to if an event will occur or not, it relates to betting odds. When you are predicting outcomes with odds, you can also translate the odds into probability. This skill set will come in handy when you are new to certain betting options. That way, you can easily interpret if you are on the right track.
There is a formula for the calculation and it works with fractional odds. So assuming the fraction is A/B, then the probability formula is B/(A+B). The answer you get is the percentage that such an outcome will occur. Let’s consider a few examples.
- 4/1 amounts to 1/(4+1) = 0.20. 0.20 here is 20% which means there is a 20% chance of having such an outcome.
- 1/1 amounts to 1/(1+1) = 0.50. The answer here translates to a 50% chance of the outcome occurring.
So now you can convert any fractional odd to the probability equivalent. This would help if you are betting on an unfamiliar sport that you don’t know so much about. That way, you can filter the options to which ones are best for you.
Converting Betting Odds to Winning Potential
Probability is not the only thing you can get from fractional odds. You can also deduce the amount that you stand to win when the outcome occurs as predicted. So after seeing the chance of the event occurring, this is the next step.
There is no special formula but we are going to use the A/B analogy. For every A you bet, you will win B. Let us consider examples to make it easy for you:
- 4/1 means for every £1 you stake, you stand to win £4.
- 1/1 means for every £1 you stake, you stand to win £1
- 1/7 means for every £7 you stake, you stand to win £1
The analysis is easy to grasp and once you understand it; it will help you to weigh the risk to reward before staking. No matter how high the probability is, if the risk to reward is poor, it isn’t worth the stake.
Every calculation we stated involves fractions, however, not all bookies work with fractions. Some other brands use decimal format for their odds. And if there is no option to view the fractional equivalent, there is a way to calculate your potential winnings. The formula is (odd*stake)-stake. As usual, let’s buttress it with some examples.
- Let’s assume you are staking £10 on a 4.0 decimal. Potential winning = (4.0 * £10) – £10 = £30
- In a case of 1.25 with a £20 stake, potential winning = (1.25 * £20) – £20 = £5
The formula may be a bit tricky for first-timers so ensure that you are using the right formula and parameters.
Knowing how to calculate your odds is a basic skill we believe every bettor should have in their arsenal. It goes a long way in helping you to filter the best bets to play. And most importantly, to triumph against the ever-dominant house edge.