How to Read American Odds?

American odds (aka Moneyline or U.S. odds) are a betting odds format favored in the U.S. They’re presented as whole numbers prefixed with a “+” or “-” sign, reflecting the amount you’d wager or win for every $100 placed.

• When you see a number like “-140”, it means you’d need to bet $140 to win an additional $100.
• A number like “+290” flips the script. Here, a $100 bet could bring you a profit of $290 if your bet is successful.

Positive odds (+) signals underdogs, suggesting a higher potential return on a smaller bet. Negative odds (–) point to the favorites, indicating a lower return on a higher bet.

U.S. odds use $100 as a standard measure to simplify betting outcomes. American odds indicate the amount one must wager to win $100, or the amount one would win for every $100 staked.

Example in Football: Germany vs Denmark

Imagine a Euro showdown between Germany and Denmark. The bookies have set the odds to reflect the teams’ chances of winning, with Germany (the home team) as the favorites and Denmark (the away team) as the underdogs.

Germany’s Odds (-165): The “-165” signifies that Germany is expected to win.

To profit $100 from a Germany victory, you would need to bet $165. If Germany wins, you get your $165 back plus $100 in profit, totaling a $265 payout.

Denmark’s Odds (+450): The “+450” indicates Denmark is less likely to win.

However, a $100 bet on Denmark could bring in $450 in profit if they manage an upset. This means a total payout of $550, combining your initial stake and profit.

Translating Odds into Winning Percentages

Converting odds to percentages gives you a clearer picture of your break-even point (BEP). For instance, for favorite with -140 odds, you’d calculate it like this:

BEP = (Risk Amount/(Risk Amount + Win Amount)) = (140/(140+100)) = 0.5833 or 58.33%. This means you’d need to win about 58.33% of your bets at these odds to break even over time.

For a +360 underdog, the math looks like this: BEP = Total Payout/Risk Amount = 100/460 =0.2174 or 21.74%. So, if you believe the underdog has more than a 21.74% chance to win, that bet might be worth considering.

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