Regardless of your familiarity with sports betting, calculating the potential return on a bet requires math. Even when using round, easy numbers (such as 100), calculations can still be tricky, as odds are provided in different formats. However, Sidelines streamlines the math for you. Our betting odds calculator determines your potential payout based on your stakes and the odds at time of your wager.
How are betting odds calculated?
Lines are created by sportsbooks using a statistical model to provide a forecast of a game, which then drives the first line and the odds. Meaning, betting odds are not arbitrarily assigned; they serve to communicate two things to every bettor. First, odds are the numerical way sportsbooks indicate the likelihood of an event happening. Second (and most relevant factor for sports bettors), they communicate how much money you could win by betting on an event. However, before taking a sportsbook at their word regarding the odds of an event, you should know that sportsbooks don’t like to gamble. They minimize their risk by adjusting the odds on either side of a particular bet in order to drive action to one side or another. This ensures that they are not exposed and make an even amount of money. So before placing a bet, be sure you do an odds comparison with Sidelines.
Having said that, betting odds are displayed in a variety of formats, each with a different way of calculating payouts. The most common formats include:
American odds (also referred to as “moneyline odds”).
How are moneyline odds calculated?
Moneyline bets are the easiest wagers of all. Simply put, it is betting on a specific team to win the game. As opposed to betting on a point spread (which takes into account who wins and by how much), the moneyline bet is ONLY about which team wins. As such, in each moneyline bet, there is a favorite and underdog. The odds for favorites are denoted by a negative (-) sign and the amount you need to bet in order to win $100.
To calculate your potential payout on a favorite, all you need to do is divide your stakes (the amount of money you wagered) by the value resulting from the moneyline odds divided by 100. Put simply: Potential profit = Wager / (Odds/100).
On the other hand, underdog odds are represented by a positive (+) sign, and denote how much you can win by betting $100.
To calculate your potential payout on an underdog, all you need to do is multiply your stakes (the amount of money you wagered) by the value resulting from the moneyline odds divided by 100. Put simply: Potential profit = Wager x (Odds/100).
How are decimal odds calculated?
Decimal odds are popular in Europe and in general due to the simplicity of calculating potential payouts. As the name suggests, these odds are displayed in a decimal format in which two numbers are separated by a decimal point. For example, 1.25, 2.25, or 5.50. In order to calculate your potential payout you simply multiply your stakes (the amount of money you wagered) by the odds. For example, if you bet $100 on the Pistons beating the Knicks at 2.25 odds, your total potential payout would be $225 ($100 x 2.25).
How are fractional odds calculated?
The preferred odds of bookies in the UK and your junior high math teacher. As the name would suggest, these odds are communicated to the bettor in the form of a fraction. For example, if you’re betting on Secretariat at the Kentucky Derby and the odds are 5/1 (announced as five-to-one), that means you win $5 against every $1 you wager. Say you stake $10 at 5/1, you would get a total return of $60 ($50 profit plus your $10 stake). Therefore, the calculation is expressed as: potential profit = stake multiplied by (numerator/denominator). In the preceding example, this would be expressed as potential profit = $10 x (5/1).
How are implied odds calculated?
Simply put, implied odds (also referred to as implied probability) in sports betting is converting traditional odds into a percentage. While this may seem intimidating at first, calculating implied odds is a relatively simple procedure, you simply divide 1 by the decimal odds. For example, if the Detroit Lions are given odds of 3.25 to win their game, their implied probability of winning is .3, or approximately 30%.