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|‣||How To Read Decimal Odds|
|‣||How To Calculate Winnings With Decimal Odds|
|‣||How To Convert Decimal Odds|
American odds may be popular in the States, but in most parts of the world, the default format used to represent odds is the decimal odds format.
It’s easy to see why decimal odds are favored in many parts of the world. Calculations with decimals are simple and straightforward, meaning that newbies can easily get accustomed to the format, and it’s also easier to calculate an event’s probability if you’re using decimal odds.
Since many sportsbooks allow bettors to choose their desired odds format, you can freely switch from American odds to decimal odds if you wish.
If you’re interested in finding out how decimal odds really work, read on!
Understanding Decimal Odds
Decimal odds are written as numbers and most are usually rounded off to two decimal places—for example, 3.25.
Here’s one simple rule of decimal odds: the lower the value, the greater the probability. So if one event has odds of 1.50 and another has odds of 1.90, the one with the lower odds, 1.50, is more likely to happen.
This is because 1.50 indicates a 66.67% probability while 1.90 indicates a 52.63% probability.
Decimal odds lower than 2.00 often represent the favorites. On the other hand, an underdog will usually have odds that are greater than 2.00.
Calculating Winnings With Decimal Odds
As stated above, one reason why many people like decimal odds is because you can easily calculate your winnings.
All you have to do is multiply your stake by the odds and you’ll have your total payout. Here’s the simple formula:
Amount Wagered x Decimal Odds = Total Payout
|Team||American Odds||Decimal Odds||Bet amount||To Win||Total Payout|
For example, let’s say you want to bet on the above NFL game.
If you bet $50 on the Vikings (-125), your payout will be calculated in the following way:
$50 x 1.8 = $90
Unlike American odds, decimal odds give you your total payout, so your original stake is included. So this $90 in the above example includes your $40 profit plus your $50 stake.
If your friend wants to bet $50 on the Colts (+125), their total payout will be calculated in the following way:
$50 x 2.25 = $112.50
So if the Colts win, your friend will get $112.50, and this amount includes his original $50 plus his $62.50 profit.
Convert Decimal Odds To Implied Probability
You can convert decimal odds to implied probability easily. This will help you know the mathematical chances of your bet being a winner—although you shouldn’t place a bet simply because of probability; always consider other factors first.
As we stated above, converting decimal odds to implied probability is very easy, especially when compared to American odds.
American odds have different conversion formulas for both positive and negative odds, while there is only one conversion formula for decimal odds.
Here is the formula that you should use when you want to convert decimal odds to implied probability:
Implied Probability = (1 ÷ Decimal Odds) x 100
So using our above table, we can get the implied probability of both the Minnesota Vikings and the Indianapolis Colts.
Vikings’ Odds = 1.80
Vikings’ Implied Probability = (1 ÷ 1.80) x 100 = 55.56%
Colts’ Odds = 2.25
Colts’ Implied Probability = (1 ÷ 2.25) x 100 = 44.44%
Converting Decimal Odds To American Odds
When you interact with different types of odds enough, it will reach a point where converting the values in your head will become almost second nature. For example, you won’t need a converter to know that an over/under bet priced at -110 is 1.91 in decimal odds.
So if you’re used to American odds and you find yourself in a situation where you’re forced to interact with decimal odds, you can easily convert those pesky decimal points to US odds.
One such way is by using online odds converters, such as the one available on this site. Another way is by employing a conversion formula, such as the ones we’ve listed below.
If you’re dealing with odds that are greater than 2.00, including 2.00 itself, you can use this formula:
(Decimal odds – 1) x 100 = Positive American Odds
So in our above example, the Colts were priced at 2.25. Let’s convert that to American odds.
(2.25 – 1) x 100 = +125
On the other hand, if you’re dealing with odds that are less than 2.00, here’s the formula that you should use:
(-100) ÷ (Decimal Odds – 1) = Negative American Odds
In our example, the Vikings were priced at 1.80. Let’s also convert that to American odds.
(-100) ÷ (1.80 – 1) = -125
Converting American Odds To Decimal Odds
Let’s say you’re used to decimal odds instead of American odds, or maybe this article has made you see the benefits of decimal odds over American odds and you now want to use decimal odds going forward.
You can use the following conversion formulas, which will help you in situations where you’re forced to interact with American odds.
When converting positive odds, here’s the conversion formula that you should use:
(Moneyline odds/100) + 1 = Decimal Odds
If a team has odds of +550, here’s how you convert such American odds to decimal odds:
(550/100) + 1 = 6.50
If you’re dealing with negative odds, here’s the appropriate conversion formula:
1 + (100/Moneyline odds) = Decimal Odds
So if a team has odds of -180, you can convert such odds by following the above formula.
However, always drop the negative sign from the odds first, i.e., -180 becomes 180. From there, just stick to the formula.
1 + (100/180) = 1.56
If you’re not fond of mathematical formulas and all this seems like too much work, you can always opt for an online odds converter.
Decimal Odds Vs. American Odds
Decimal odds have one major advantage—simplicity. Most people have interacted with decimals at some point in their life, and that’s why it’s easier for many people to calculate and convert decimal odds.
However, when you become used to American odds, you won’t find anything complicated about them. So, ultimately, it’s just a matter of personal preference.
Most American sportsbooks prefer the use of American odds, but most of them will allow you to choose your desired format.
If you like the simplicity that decimal odds offer, you can always switch to that format at any time.
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