What are American Odds and Decimal Odds?
American Odds and Decimal Odds are two of the most widely used methods to calculate betting payouts. If you are new to sports betting, understanding the differences between the two can be confusing - but not to worry, we are here to explain. If you're in a hurry, we suggest to try our American odds calculator and our Decimal odds calculator. Both will allow you to plug in your bet amount and your odds, and in turn, will give you your implied win probability, payout and net win amount. If you're into fully understanding both odd types - please carry on! :)
American Odds can be confusing at first, but they can also be very lucrative for bettors who understand how to use them. When calculating payouts, the amount of money that a bettor will win or lose depends on the amount of money wagered and the odds associated with that bet. For example, if the odds for a team to win a game are +150, a bettor who wagers $100 on that team would win $150 if the team wins the game. If the team loses the game, the bettor will lose the $100 wagered.
The payout for a bet with American Odds is calculated as follows:
- If the odds are positive (i.e. +150), the bettor will win the amount wagered multiplied by the odds, plus the amount wagered.
- If the odds are negative (i.e. -150), the bettor will have to wager the amount wagered multiplied by the odds, in order to win the amount wagered.
Advantages of American Odds
American Odds are a popular form of betting odds in the United States because they give bettors more flexibility when it comes to placing bets. With American Odds, bettors can wager any amount they want and still have a chance to win or lose the same amount of money. In addition, American Odds are easy to understand and calculate, which makes them ideal for beginner bettors. American Odds also provide a good way for experienced bettors to maximize their profits by taking advantage of the different odds associated with different teams and events.
Pros of American Odds
- Easy to understand for those familiar with American sports betting.
- Allows for bettors to calculate the potential return on their wager.
- Widely used in the United States.
Disadvantages of American Odds
The main disadvantage of American Odds is that they can be confusing for bettors who are unfamiliar with the concept. The terms “minus” and “plus” can be confusing, and the calculation of payouts can be difficult to understand. In addition, American Odds are not as widely used as other types of betting odds, so bettors may not have access to the same range of betting options as they would with other types of odds.
American Odds are a popular form of betting odds used in the United States, and are used to represent the chances of a team or individual winning a game or event. American Odds can be confusing at first, but they can be very lucrative for bettors who understand how to use them. American Odds provide bettors with more flexibility when it comes to placing bets, and can provide experienced bettors with a way to maximize their profits.
Cons of American Odds
- Can be confusing for those unfamiliar with the style.
- Does not provide the same level of detail as other betting odds formats.
- Not as widely used outside the United States.
Decimal odds, also known as European odds, are a type of betting odds used primarily in Europe and in online betting. They are the most popular form of betting odds used in sports betting and are relatively easy to calculate and understand. Decimal odds give the bettor a clear view of the potential returns for a given stake. In this article, we will explain what decimal odds are, how to calculate them and give examples of decimal odds in action.
What are Decimal Odds?
Decimal odds are a type of betting odds used in European betting markets. They are also used in online betting. Decimal odds are expressed as a single number, which represents the total amount of money the bettor can expect to win on a bet. This includes the original stake, which is not included in other types of betting odds. Decimal odds are also known as European odds, because they are most commonly used in Europe.
How to Calculate Decimal Odds
Calculating decimal odds is relatively straightforward. The formula used to calculate decimal odds is: Decimal Odds = (Stake x Odds) + Stake For example, if you place a bet of $10 on a horse with decimal odds of 2.5, your potential winnings would be calculated as follows: Decimal Odds = (10 x 2.5) + 10 Decimal Odds = 25 This means that if you win the bet, you will receive $25 in total winnings, including the original stake of $10. One of our favorite sportsbooks is PointsBet which offers American, Decimal and fractional odds on all major sports events.
Examples of Decimal Odds in Action
To illustrate how decimal odds work in action, let’s look at some examples. If you place a bet of $10 on a soccer team with decimal odds of 2.5, your potential winnings would be calculated as follows: Decimal Odds = (10 x 2.5) + 10 Decimal Odds = 25 This means that if you win the bet, you will receive $25 in total winnings, including the original stake of $10. If you place a bet of $50 on a tennis player with decimal odds of 3.2, your potential winnings would be calculated as follows: Decimal Odds = (50 x 3.2) + 50 Decimal Odds = 160 This means that if you win the bet, you will receive $160 in total winnings, including the original stake of $50.
Decimal odds are the most popular type of betting odds used in Europe and online betting. They are relatively easy to calculate and understand, and provide the bettor with a clear view of the potential returns for a given stake. By understanding how to calculate decimal odds, bettors can easily calculate the potential winnings of a bet before they place it.
Pros of Decimal Odds
- Simplicity – Decimal odds are very simple to understand, as they are written in a straightforward way.
- Direct Calculation – Decimal odds allow you to directly calculate the amount of money to be won or lost with a single bet.
- Acceptance – Decimal odds are the most popular form of betting odds and are widely accepted across the world.
Cons of Decimal Odds
- Risk of Misinterpretation – Decimal odds can be misinterpreted if you are not familiar with them.
- Difficult to Understand – Decimal odds can be difficult to understand for some people, especially those who are new to betting.
- Inaccurate Representation – Decimal odds do not always accurately represent the true odds of a bet, as they are rounded up to the nearest tenth.
How to Calculate Payout
Once you understand how American Odds and Decimal Odds are calculated, the bettor can calculate the potential payout. If you place a bet on the underdog, to calculate the potential payout for an American Odds bet, simply multiply the amount of your bet by the number after the sign. If you bet on the favorite team, you need to divide your bet amount by the number following the minus sign. To calculate the potential payout for a Decimal Odds bet, simply multiply the amount of your bet by the number.
For example, let's say you wanted to bet $50 on the Patriots to win the game. Using the American Odds example from above, you would divide $50 by 1.5, for a potential payout of $33.33. Using the Decimal Odds example from above, you would multiply $50 by 1.67, for a potential payout of $83.50.
By understanding the differences between American Odds and Decimal Odds, and learning how to calculate the potential payouts, you will be able to make smarter and more informed bets when you are ready to start betting.
Calculating the Payout
Once the type of bet has been determined, the next step is to calculate the payout. The payout is determined by the odds and the amount of the wager. To calculate the payout, multiply the odds by the amount of the wager. For example, if the odds are 3/2 and the bettor is wagering $100, then the payout would be $150 (3/2 x $100 = $150).
Examples by Betting Type
Example 1: Moneyline Bet
Odds: 2/1 Wager: $50 Payout: $100 (2/1 x $50 = $100)
Example 2: Point Spread Bet
Spread: 7 Wager: $100 Payout: $190 (if the team wins by more than 7 points)
Example 3: Totals Bet
Total: 47 Wager: $50 Payout: $75 (if the total is under 47 points)
Example 4: Moneyline Bet
Odds: 3/2 Wager: $200 Payout: $300 (3/2 x $200 = $300)
Example 5: Point Spread Bet
Spread: 4 Wager: $250 Payout: $325 (if the team wins by more than 4 points)
Calculating a Positive Odds Bet
If the American Odds are positive, it shows how much profit a bettor would make on a $100 wager. The equation for calculating the payout for a positive odd bet is: Payout = (Odds / 100) * Wager + Wager Examples:
- Odds of +150, Wager of $100: Payout = (150/100) * 100 + 100 = $250
- Odds of +200, Wager of $50: Payout = (200/100) * 50 + 50 = $150
- Odds of +500, Wager of $20: Payout = (500/100) * 20 + 20 = $120
- Odds of +1000, Wager of $10: Payout = (1000/100) * 10 + 10 = $110
- Odds of +5000, Wager of $2: Payout = (5000/100) * 2 + 2 = $102
Calculating a Negative Odds Bet
If the American Odds are negative, it shows how much a bettor would need to wager in order to win $100. The equation for calculating the payout for a negative odd bet is: Payout = (100 / Abs(Odds)) * Wager Examples:
- Odds of -150, Wager of $100: Payout = (100/150) * 100 = $66.67
- Odds of -200, Wager of $50: Payout = (100/200) * 50 = $25
- Odds of -500, Wager of $20: Payout = (100/500) * 20 = $4
- Odds of -1000, Wager of $10: Payout = (100/1000) * 10 = $2
- Odds of -5000, Wager of $2: Payout = (100/5000) * 2 = $0.4