Bookmakers and sportsbooks typically offer three odds formats – American, fractional and decimal. Also known as the European format, decimal odds are used by many sports betting sites, especially those based in Europe.
If you want to learn how to read decimal odds in sports betting, you have come to the right place. Below, we explain how to calculate payouts using decimal odds, how to convert decimal odds to American odds and more.
Decimal Odds Explained
As we already mentioned, decimal odds are used across Europe, but they are also popular in countries like Australia, New Zealand and Canada. Essentially, decimal odds are popular across the world because they are easy to read and work with.
Decimal odds are a way of representing the potential winnings for every $1 wagered. Unlike other odds formats, the decimal number already includes your initial stake. That means there is no need to calculate the profit separately.
In the next section, we explain how to calculate payouts using decimal odds and provide an example to make life easier for you.
How to Calculate Payouts Using Decimal Odds
Decimal odds are undoubtedly the easiest format to understand. While American odds and fractional odds can be tricky to read, decimal odds are relatively straight forward.
Here is an example of how decimal odds work:
Real Madrid (1.50)
Let’s say Real Madrid and Barcelona are facing off in La Liga. Real Madrid is the favorite at 1.50, while Barcelona is the underdog at 4.00. The bookies are also offering odds of 2.50 for the draw.
These numbers represent the amount you would win from each $1 stake. So, if you back Real Madrid with a $100 bet, you could receive a payout of $150 ($100 x 1.50). On the other hand, if you back Barcelona with a $100 bet, you could receive a payout of $400 ($100 x 4.00).
How to Convert Decimal Odds to American Odds
If you want to convert decimal odds greater than or equal to 2.00 into American odds, you need to multiply (the decimal odds minus one) by 100.
On the flip side, if you want to convert decimal odds less than two into American odds, you need to divide -100 by (the decimal odds minus one).
Here are some common odds outlining the conversion process:
Decimal: 1.25; American: -400
Decimal: 1.50; American: -200
Decimal: 2.00; American: +100
Decimal: 2.50; American: +150
Decimal: 3.00; American: +200
It is worth remembering that there are plenty of useful odds converters online, so you don’t need to figure out the sums in your head or with a calculator. Thankfully, these online converters make life easy for sports bettors.
Read our tips for betting on NFL totals next.