Anyone who knows even a little about sports betting will know that the odds are a part of this industry. It is these odds that determine the potential payout you will receive if your selection is a winning one. While it is important that you know what the odds are for your preferred market(s), it’s also vital that you know how to calculate betting odds, too.

The odds are calculated by the probability of something happening. We’ll explain this in more detail here, as part of our various online betting guides. Read on to find out more about the odds and how to calculate them.

What Are Sports Betting Odds?

In betting, the odds serve as a ratio between the stakes placed by bettors involved in a wager. These can be viewed in a few different formats, with fractional, decimal, and American being the most popular three. If you see 3/1 for example, this is how fractional odds look. This example indicates that the first party, usually the sports betting operator, stakes three times the amount that is wagered by the second party, or the bettor as it would be.

At a basic level, betting gives you the capability of predicting the outcome of a certain event. Should your prediction on this be correct, you receive a payout for it. Horse racing betting is a hugely popular activity in South Africa, with races around the world receiving wagers from the country. So too are events from the worlds of cricket, rugby, soccer, tennis and more. For each of these, there is a certain number of outcomes per available market, with each one having its own set of odds.

How Do You Calculate the Betting Odds?

You’ll need to keep in mind that betting odd are calculated based on the probability of something happening. So, if you join a sportsbook providing odds of 4/1 on Everton winning Manchester City, then it suggests that there is a 1 in 4 chance of that team winning. It is calculated as 1 ÷ (4+1). That equates to 0.2, so there is a 20% chance of this outcome being what happens. The winnings you would receive from a bet on this market is calculated in a simple way.

All you need to do is multiply your stake by the odds provided. So, let’s say you decide to back Everton with a R50 bet. You can calculate your payout with the following equation:

R50 x (4 ÷ 1). This equates to R200. You would also get your original R50 stake back, as this is a fractional format. Thus, your total payout would be R250 in this instance. Fractional odds are popular in the United Kingdom more so than anywhere else. While the various top South African sportsbooks do offer odds in this format too, you can view them in decimal format as well, which many people prefer.

Decimal and American Odds Calculating

If we use the same soccer match from above featuring Everton against Manchester City, then odds of 4/1 convert to decimal odds of 5.0. In this case, you simply multiply your stake by the decimal odds provided. Thus, the calculation becomes R50 (your stake) multiplied by 5 (the decimal odds).

The payout is the same, R250 – it’s just that the original stake in this format is included in the final calculation price. In fractional odds, this isn’t the case, so you need to add it back on top yourself.

American odds look slightly more confusing with the bigger numbers and the + and – symbols included. You can easily convert these to decimal or fractional odds at a sportsbook, should you prefer something simpler. The odds of 4/1 become American odds of +400. Just take the fractional value of 4 divided by 1 and then multiply it by 100 for fractions greater than 1. Anything less than 1, you use a calculation of -100 divided by the fractional value of 4 divided by 1.

It is also key to note that while online sportsbooks also provide a simple tool to display the odds in different formats, you can find various convertor tools online as well.