$/€ About Decimal Odds with Examples
Lina Almans
08 May 2023
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When it comes to betting, there are different ways to express the likelihood of an event happening. One common format is decimal odds. In this post, we’ll explain decimal odds, how to calculate and interpret them.
What are Decimal Odds?
Decimal odds, also known as European odds, are a numerical way of showing the probability of an event happening. Decimal odds are commonly used in Europe.
Instead of using fractions or ratios, decimal odds are expressed as decimal numbers. They include the original stake, making it a popular choice for many bettors.
For example, if the decimal odds of a team winning a match are 2.5, it means that the bookie believes there is a 40% chance of that team winning (1 divided by 2.5 is 0.4 or 40%).
| Stake | Decimal Odds | Probability of Winning | Potential Return |
| $10 | 2.50 | 40% | $25 |
So, if you bet $10 with decimal odds of 2.50, your potential return would be $25 ($10 x 2.50), including the original $10 stake.
How to Calculate Decimal Odds?
Calculating decimal odds is simple. The general formula for calculating is:
Decimal Odds = (Total Return / Stake)
We can rearrange this formula to solve for Total Return, which gives us:
Total Return = Stake * Decimal Odds
Let’s say Manchester United is playing against Liverpool. The bookmaker sets the odds for Manchester United winning at 2.50 and the odds for Liverpool winning at 1.80. If you bet $10 on Manchester United and they win, your total payout would be $25 ($10 x 2.50), which includes your original $10 stake. On the other hand, if you bet $10 on Liverpool and they win, your total payout would be $18 ($10 x 1.80), including your original $10 stake.
Interpreting Decimal Odds
Decimal odds can tell you two things: the probability of an event happening and the potential payout. The higher the decimal odds, the less likely an event is to happen, but the higher the potential payout. Conversely, the lower the decimal odds, the more likely an event is to happen, but the lower the potential payout.
Why Do Bookies Adjust Odds?
Bookmakers set odds for several reasons, and they may change those odds based on the opening line If they see that the odds of a particular outcome are different at another bookmaker, they will adjust their own odds to avoid creating any discrepancies. These discrepancies, also known as arbitrage or “sure bets”, are opportunities to place wagers on different outcomes of a market with guaranteed profits.
Why Do the Odds Move After the Initial Release?
| Reasons for Odds Movement | Explanation |
| New Information | Odds can change due to new information that was not considered in the initial calculation. |
| Betting Action | Sportsbooks respond to the actions of professional bettors or groups of bettors. If a bookie sees a lot of action on one side of a bet, they may adjust the odds to balance their risk. This can lead to competing bookies also adjusting their odds. |
What is the equivalent of even odds in decimal?
Even odds in decimal format are represented as 2.00. This means that if you place a bet of one unit (such as $100), you will win one unit in return (also $100) for a total payout of two units ($200 in this example).
