Decimal Odds in Sports Betting, Explained

I promised converting decimal odds to implied probabilities was easy. So here we go. Fractional odds, often used by British and Irish bookmakers, can also be converted to decimal odds to understand potential profit in betting scenarios.

1 / Decimal Odds

That’s it!

What’s the implied probability of the Dolphins at +160 (or 2.5 in decimal odds)? 1 / 2.6 = 38.5%

The Bills at -200 (or 1.5 in decimal odds) would have an implied probability of 66.6%. 1 / 1.5 = 66.6%

The biggest reason to switch to decimal odds is because the conversion to probabilities is so easy. It’s the same whether you’re working with an underdog or favorite. Additionally, understanding different odds formats, such as American and Decimal odds, is crucial for bettors to calculate their returns accurately.

European odds, also known as decimal odds, are popular and user-friendly because they include the total payout in the odds number, making them easier to understand and calculate.

Converting American odds to implied probabilities requires slightly different formulas for favorites and underdogs.

For decimals, it’s the same no matter what you’re betting.

Decimal odds start to look familiar when you’ve seen them enough.

For example, an NFL point spread at -110 is 1.91. That will become second nature quickly.

But at first, you’ll need to do some conversion, especially for favorites. You can use our odds converter, or do it by hand.

To convert fractional odds to decimal odds, add one to the result of dividing the numerator by the denominator. For example, 5/2 fractional odds convert to 3.5 in decimal odds (1 + 5/2).

Here’s the math: For Positive Odds:* 1 + (American odds / 100)*  Let’s say you have American odds of +160 on the Dolphins. It’s easy enough.

1 + (160/100) = 2.6

For Negative Odds:* 1 – (100 / American Odds)* So converting the Bills from -200 is slightly different.

1 – (100/-200) = 1.5

U.S. sportsbooks will default to show American odds, but you can switch to show decimal odds instead. It’s usually in the top right corner once you’re logged in. This option is particularly beneficial for sports bettors who want a clearer understanding of their potential payouts.

It’s a personal preference, but if you’re serious about using basic math like implied probabilities when you bet, decimal odds will save you the extra conversion steps. A winning bet is calculated by multiplying your stake by the decimal odds, which directly shows your total payout, including the original stake.