Betting odds can seem confusing for beginners, but understanding them is crucial to making informed wagers. Whether you’re betting on football, horse racing, or any other sport, knowing how odds work will help you calculate potential returns and improve your betting strategy.
In this guide, we’ll break down fractional and decimal odds, explaining how they work, how to calculate winnings, and when to use each format.
What Are Betting Odds?
Betting odds represent the probability of an outcome happening and determine how much you can win from a bet. Bookmakers use different formats to display these odds, with fractional odds (popular in the UK and Ireland) and decimal odds (widely used in Europe, Canada, and Australia) being the most common.
Odds also help punters determine the implied probability—the bookmaker’s estimation of the likelihood of an event occurring.
Fractional Odds Explained
Fractional odds are the traditional format used by UK bookmakers, represented as fractions (e.g., 5/1, 7/2, or 10/11).
How to Read Fractional Odds
The first number (numerator) represents potential profit, while the second number (denominator) represents the stake required to win that profit.
For example:
- 5/1(read as “five to one”) means for every £1 staked, you win £5 profit (plus your stake back).
- 7/2means for every £2 staked, you win £7 profit (plus your stake back).
- 10/11means you need to bet £11 to win £10 profit (plus your stake back).
How to Calculate Payouts for Fractional Odds
Total Payout = (Stake × Fractional Odds) + Stake
Example 1: If you bet £10 on 5/1 odds:
(£10 × 5) + £10 = £60 total payout (£50 profit + £10 stake back).
Example 2: If you bet £20 on 7/2 odds:
(£20 × 3.5) + £20 = £90 total payout (£70 profit + £20 stake back).
Implied Probability in Fractional Odds
To determine the implied probability from fractional odds, use this formula:
Probability (%) = Denominator / (Denominator + Numerator) × 100
For 5/1: 1 / (5+1) × 100 = 16.67%
For 7/2: 2 / (7+2) × 100 = 22.22%
For 10/11: 11 / (10+11) × 100 = 52.38%
A lower probability indicates a higher risk but bigger potential payout, while a higher probability means lower risk and smaller returns.
Decimal Odds Explained
Decimal odds are more commonly used outside the UK and are often seen on betting exchanges. They are easier to understand because they directly show the total payout per unit staked, rather than profit alone.
How to Read Decimal Odds
Decimal odds represent the total amount returned per £1 bet, including your original stake.
For example:
- 00means you receive £6 total payout for every £1 bet (£5 profit + £1 stake).
- 50means you receive £4.50 total payout for every £1 bet (£3.50 profit + £1 stake).
- 91means you receive £1.91 total payout for every £1 bet (£0.91 profit + £1 stake).
How to Calculate Payouts for Decimal Odds
Total Payout = Stake × Decimal Odds
Example 1: If you bet £10 on 6.00 odds:
£10 × 6.00 = £60 total payout (£50 profit + £10 stake back).
Example 2: If you bet £20 on 4.50 odds:
£20 × 4.50 = £90 total payout (£70 profit + £20 stake back).
Implied Probability in Decimal Odds
To calculate the implied probability from decimal odds:
Probability (%) = (1 / Decimal Odds) × 100
For 6.00: (1 / 6.00) × 100 = 16.67%
For 4.50: (1 / 4.50) × 100 = 22.22%
For 1.91: (1 / 1.91) × 100 = 52.38%
Fractional vs. Decimal Odds: Which Is Better?
| Feature | Fractional Odds | Decimal Odds |
| Popular In | UK, Ireland | Europe, Australia, Canada |
| Complexity | Harder to calculate | Easier to understand |
| Payout Calculation | Requires separate profit calculation | Shows total payout directly |
| Used In | Traditional bookies, horse racing | Online sportsbooks, exchanges |
Many online betting platforms allow users to switch between fractional and decimal odds, so it’s helpful to understand both formats.
Converting Between Fractional and Decimal Odds
To convert fractional odds to decimal odds:
Decimal Odds = (Fractional Odds) + 1
For 5/1: (5 ÷ 1) + 1 = 6.00
For 7/2: (7 ÷ 2) + 1 = 4.50
For 10/11: (10 ÷ 11) + 1 = 1.91
To convert decimal odds to fractional odds:
Fractional Odds = (Decimal Odds – 1) converted to fraction
For 6.00: 6.00 – 1 = 5/1
For 4.50: 4.50 – 1 = 7/2
For 1.91: 1.91 – 1 = 10/11
Final Tips for Understanding Betting Odds
- Always check implied probability– If a bet offers worse odds than the implied probability, it might not be worth it.
- Compare odds across bookmakers– Different bookies offer slightly different odds, so shop around for the best value.
- Use online calculators– If you’re unsure how to calculate winnings, use an online betting odds calculator.
- Understand the market– Some sports have lower margins and better odds, while others (like niche markets) have higher bookmaker profits.
- Consider risk vs. reward– Higher odds mean higher payouts but also lower chances of winning.
Conclusion
Understanding betting odds is essential for making smart wagers. While fractional odds are popular in the UK, decimal odds offer a clearer way to see total payouts. By knowing how to calculate implied probability and potential winnings, you can place informed bets and maximise your returns.
Next time you browse a bookmaker’s odds, take a moment to analyse the numbers, compare formats, and bet wisely. Happy betting!
Betting odds can seem confusing for beginners, but understanding them is crucial to making informed wagers. Whether you’re betting on football, horse racing, or any other sport, knowing how odds work will help you calculate potential returns and improve your betting strategy.
In this guide, we’ll break down fractional and decimal odds, explaining how they work, how to calculate winnings, and when to use each format.
What Are Betting Odds?
Betting odds represent the probability of an outcome happening and determine how much you can win from a bet. Bookmakers use different formats to display these odds, with fractional odds (popular in the UK and Ireland) and decimal odds (widely used in Europe, Canada, and Australia) being the most common.
Odds also help punters determine the implied probability — the bookmaker’s estimation of the likelihood of an event occurring.
Fractional Odds Explained
Fractional odds are the traditional format used by UK bookmakers, represented as fractions (e.g., 5/1, 7/2, or 10/11).
How to Read Fractional Odds
The first number (numerator) represents potential profit, while the second number (denominator) represents the stake required to win that profit.
For example:
- 5/1(read as “five to one”) means for every £1 staked, you win £5 profit (plus your stake back).
- 7/2means for every £2 staked, you win £7 profit (plus your stake back).
- 10/11means you need to bet £11 to win £10 profit (plus your stake back).
How to Calculate Payouts for Fractional Odds
Fractional odds are the traditional format used by UK bookmakers, represented as fractions (e.g., 5/1, 7/2, or 10/11).
Total Payout = (Stake × Fractional Odds) + Stake
Example 1: If you bet £10 on 5/1 odds:
(£10 × 5) + £10 = £60 total payout (£50 profit + £10 stake back).
Example 2: If you bet £20 on 7/2 odds:
(£20 × 3.5) + £20 = £90 total payout (£70 profit + £20 stake back).
Implied Probability in Fractional Odds
To determine the implied probability from fractional odds, use this formula:
Probability (%) = Denominator / (Denominator + Numerator) × 100
For 5/1: 1 / (5+1) × 100 = 16.67%
For 7/2: 2 / (7+2) × 100 = 22.22%
For 10/11: 11 / (10+11) × 100 = 52.38%
A lower probability indicates a higher risk but bigger potential payout, while a higher probability means lower risk and smaller returns.
Decimal Odds Explained
Decimal odds are more commonly used outside the UK and are often seen on betting exchanges. They are easier to understand because they directly show the total payout per unit staked, rather than profit alone.
How to Read Decimal Odds
Decimal odds represent the total amount returned per £1 bet, including your original stake.
For example:
- 00 means you receive £6 total payout for every £1 bet (£5 profit + £1 stake).
- 50 means you receive £4.50 total payout for every £1 bet (£3.50 profit + £1 stake).
- 91 means you receive £1.91 total payout for every £1 bet (£0.91 profit + £1 stake).
How to Calculate Payouts for Decimal Odds
Total Payout = Stake × Decimal Odds
Example 1: If you bet £10 on 6.00 odds:
£10 × 6.00 = £60 total payout (£50 profit + £10 stake back).
Example 2: If you bet £20 on 4.50 odds:
£20 × 4.50 = £90 total payout (£70 profit + £20 stake back).
Implied Probability in Decimal Odds
To calculate the implied probability from decimal odds:
Probability (%) = (1 / Decimal Odds) × 100
For 6.00: (1 / 6.00) × 100 = 16.67%
For 4.50: (1 / 4.50) × 100 = 22.22%
For 1.91: (1 / 1.91) × 100 = 52.38%
Fractional vs. Decimal Odds: Which Is Better?
| Feature | Fractional Odds | Decimal Odds |
| Popular In | UK, Ireland | Europe, Australia, Canada |
| Complexity | Harder to calculate | Easier to understand |
| Payout Calculation | Requires separate profit calculation | Shows total payout directly |
| Used In | Traditional bookies, horse racing | Online sportsbooks, exchanges |
Many online betting platforms allow users to switch between fractional and decimal odds, so it’s helpful to understand both formats.
Converting Between Fractional and Decimal Odds
To convert fractional odds to decimal odds:
Decimal Odds = (Fractional Odds) + 1
For 5/1: (5 ÷ 1) + 1 = 6.00
For 7/2: (7 ÷ 2) + 1 = 4.50
For 10/11: (10 ÷ 11) + 1 = 1.91
To convert decimal odds to fractional odds:
Fractional Odds = (Decimal Odds – 1) converted to fraction
For 6.00: 6.00 – 1 = 5/1
For 4.50: 4.50 – 1 = 7/2
For 1.91: 1.91 – 1 = 10/11
Final Tips for Understanding Betting Odds
- Always check implied probability – If a bet offers worse odds than the implied probability, it might not be worth it.
- Compare odds across bookmakers – Different bookies offer slightly different odds, so shop around for the best value.
- Use online calculators – If you’re unsure how to calculate winnings, use an online betting odds calculator.
- Understand the market – Some sports have lower margins and better odds, while others (like niche markets) have higher bookmaker profits.
- Consider risk vs. reward – Higher odds mean higher payouts but also lower chances of winning.
Conclusion
Understanding betting odds is essential for making smart wagers. While fractional odds are popular in the UK, decimal odds offer a clearer way to see total payouts. By knowing how to calculate implied probability and potential winnings, you can place informed bets and maximise your returns.
Next time you browse a bookmaker’s odds, take a moment to analyse the numbers, compare formats, and bet wisely. Happy betting!
