 Glossary
 What Is Gross Monthly Income?
 What Is Management?
 What Is A Problem Statement?
 What Is Annual Net Income?
 What Is A Letter Of Transmittal?
 What Is Attrition?
 What Does White Collar Mean?
 What Does Blue Collar Mean?
 What Is Efficiency Vs Effectiveness?
 What Is A Dislocated Worker?
 What Is Human Resource (HR)?
 Thank You Letter Scholarships
 What Is Constructive Criticism?
 What Is A Quarter Life Crisis?
 What Is Imposter Syndrome?
 What Is Notes Payable?
 Types Of Communication
 Economic Demand
 Cost Benefit Analysis
 Collective Bargaining
 Key Performance Indicators
 What Is Gender Bias In A Job Description?
 What Is The Hidden Job Market?
 What Is The Difference Between A Job Vs. A Career?
 What Is A Prorated Salary?
 W9 Vs. 1099
 Double Declining Balance Method
 Divergent Vs Convergent Thinking
 Budgeting Process
 Types Of Intelligence
 What Is Bargaining Power?
 What Is Operating Capital?
 Difference Between Margin Vs Markup
 Participative Leadership
 Autocratic Leadership
 Authoratarian Leadership
 Situational Leadership
 Difference Between Generalist Vs Specialist
 Strategic Leadership
 Competitive Strategies
 Equity Vs Equality
 What Is Marginalization?
 Colleague Vs Coworker
 What Is The Glass Ceiling?
 What Are Guilty Pleasures?
 Emotion Wheel
 Nepotism In The Workplace
 Sustainable Competitive Advantage
 Organizational Development
 Communication Styles
 Contingent Workers
 Passive Vs Non Passive Income
 Choose A Career
 Formulas
 APR Formula
 Total Variable Cost Formula
 How to Calculate Probability
 How To Find A Percentile
 How To Calculate Weighted Average
 What Is The Sample Mean?
 Hot To Calculate Growth Rate
 Hot To Calculate Inflation Rate
 How To Calculate Marginal Utility
 How To Average Percentages
 Calculate Debt To Asset Ratio
 How To Calculate Percent Yield
 Fixed Cost Formula
 How To Calculate Interest
 How To Calculate Earnings Per Share
 How To Calculate Retained Earnings
 How To Calculate Adjusted Gross Income
 How To Calculate Consumer Price Index
 How To Calculate Cost Of Goods Sold
 How To Calculate Correlation
 How To Calculate Confidence Interval
 How To Calculate Consumer Surplus
 How To Calculate Debt To Income Ratio
 How To Calculate Depreciation
 How To Calculate Elasticity Of Demand
 How To Calculate Equity
 How To Calculate Full Time Equivalent
 How To Calculate Gross Profit Percentage
 How To Calculate Margin Of Error
 How To Calculate Opportunity Cost
 How To Calculate Operating Cash Flow
 How To Calculate Operating Income
 How To Calculate Odds
 How To Calculate Percent Change
 How To Calculate Z Score
 Cost Of Capital Formula
 How To Calculate Time And A Half
 Types Of Variables
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No doubt, betting can be a nervewracking process. Regardless of what you’re betting on, you want to make money, not lose it. That’s why it’s important not to go in blind. After all, your money’s on the line!
Given that, understanding odds is your first step toward betting success. Instead of going into the casino with one foot already in the grave, having a good grip on odds will give you the ability to read different betting situations and make the best decisions.
Luckily, you can calculate odds on your own, which will allow you to make smarter bets. Even though there are a few different types of odds, you can easily use your mastery of one to understand the others.
Key Takeaways:

Odds are the calculated likelihood of a certain outcome, and can be determined using a variety of methods and represented in a variety of formats.

Understanding odds is crucial before making any kind of bet, and is also a useful skill in the datadriven world of business.

Using implied probability, you can convert given odds to a percentage that represents the likelihood of a certain outcome.
What Are Odds?
In simple terms, odds measure the likelihood of any particular outcome. Depending on the format you use, this is accomplished through calculating a ratio, decimal, or fraction.
Due to this predictive nature, odds are typically used in gambling, sports, or statistics. This is because you can make a more informed prediction when you compare the number of favorable outcomes to the number of unfavorable ones.
Consider a sixsided die. When you roll it, you’ll have a 5:1 chance of receiving any particular number. Further, this chance completely resets each time you roll the die. While applying this logic to sports or poker becomes far more complicated, it’s the same general concept.
Overall, weighing the likelihood of certain outcomes can help you predict the odds of you winning or losing a bet. While you’re never guaranteed a win, it’s definitely better to make an informed decision, especially when it involves your hardearned money.
Different Types of Odds
Depending on where you are and what you’re betting on, there are different odds calculation formats used. Fortunately, all of these formats are simply different ways of presenting the same information. Therefore, if you understand one, you’ll be able to understand the others.

Fractional odds. Most commonly used in the UK and popular around the world, fractional odds can be written with a slash (/) or hyphen ().
More specifically, 6/1 (sixtoone) odds would indicate that on top of winning back what you wager, you’d also win $6 against every $1. In this instance, you’d win $7 total.

Decimal odds. Decimal odds are often used around Europe, Australia, and Canada. Compared to the other formats, this odds calculation method is generally considered more approachable. For example, the numbers will immediately make you aware of who’s the favorite and who’s the underdog.
Overall, decimal odds represent the total payout instead of profit. The number you receive can tell you the amount won for every $1 wagered.

American odds. Popular in the United States, this format is based on winning $100 for any given bet. This is calculated using a minus () sign to indicate the amount you need to stake in order to win. At the same time, an underdog’s odds will be represented with a plus (+) sign, which will still indicate the amount won for every $100 staked.
In both instances, you would get your original wager back and whatever extra you’ve won. However, the system widens the difference between the odds for the favorite and the underdog as the probability of the favorite winning increases.
How to Calculate Odds
Regardless of which format you’re using, there are some initial steps you should take before you calculate your odds. Consider the following steps:

Determine the number of favorable and unfavorable outcomes.

Use a ratio to understand those initial odds. (e.g., if there are five favorable outcomes and three unfavorable ones, your chance of winning would be 5:3)

Consider the difference between dependent and independent events (e.g., the odds of your favorite team winning one game is independent, whereas the odds of that same team participating in the championship is dependent on them winning multiple games.)

Determine if all outcomes are equally likely (e.g., if a sixsided die has two of the same number on it, then your chance of getting that number is higher than all other numbers.)
Now that you’ve taken those factors into consideration, here’s how to calculate odds for each of the formats previously mentioned.
Examples of How to Calclulate Different Odds

Fractional Odds
Total Payout = [Stake x fractional odd] + Stake
Imagine you’re at a horse race, and you’re going to bet on a horse. Here are a few of your options:
Seabiscuit: 8/5
Tater Tot: 9/10
Majesty: 6/1From these numbers, you could determine that Tater Tot is the favorite, whereas Seabiscuit and Majesty have longer odds. For instance, you would win $9 against every $10 wagered on Tater Tot to win the race. On the other hand, you’d win a more considerable $8 against every $5 put at stake for Seabiscuit to win, which is more profitable but less probable.
As you can see, the more of an underdog one of the horses is, the more you’ll be paid out for your bet.
For example, if you bet $50 on Tater Tot, you could make a $45.05 profit [$50 x (9/10)], which, added on top of your initial stake, would be $95.05.
But, if you were to wager the same amount on Majesty, you could win a whopping $300 [$50 x (6/1)], leading to a total payout of $350. While this outcome is less likely, it’s also far more profitable in the event of a win.

Decimal Odds
Total Payout = Stake x Decimal Odd
Let’s say you want to bet on a particular hockey team. Here are two of your options:
Pittsburgh Penguins: 2.7
Colorado Avalanche: 1.4These numbers represent the amount you’d win for every $1 put at stake. The higher the number, the more you’d win. However, a higher number also indicates that the team is an underdog.
Therefore, if you bet $100 on the Pittsburgh Penguins, you would receive a payout of $270 if they win. ($100 x 2.70). Keep in mind that this includes your initial stake, so your net profit would be $170.

American Odds
American odds can be a bit more complicated than the other two, but the most important thing to note is that everything relates to a $100 bet.
For example, consider these football odds:
New England Patriots: 775
Denver Broncos: +450In this instance, the bookmaker offered odds of +450 for the Denver Broncos, signifying that they’re the underdog in this game. You would need to risk $100 on the Broncos to make $450 if they win. This would give you a total payout of $550.
Instead, the negative number indicates that the New England Patriots are the favorite, and so reverse the calculation. In this case, you would need to bet $775 to win $100. Though you’re betting more money, you’re actually making less in profit (initial stake $775 + profit won $100 = $875).
Implied Probability and Odds
Implied probability can be paired with odds, as odds correlate with the chance of a team winning. In the case of gambling, the implied probability is a percentage chance that will predict how likely a team is to win.
Using the American Odds example above, we can calculate how likely each team is to win using these formulas:
or
Implied Probability = 100 ÷ (Positive Odds + 100) x 100
For instance, using these formulas, we could determine that the Denver Broncos have an 18% chance of winning [100 ÷ (450 + 100) x 100]. On the other hand, the New England Patriots have an 88% chance of winning the same game [775 ÷ (775 + 100) x 100].
With that in mind, you can use implied probability to clearly outline the chance of your bet being successful.
How to Calculate Odds FAQs

Are odds and probability the same thing?
No, odds and probability are not the same thing. Probability plays a part in odds, however. Probability signifies the likelihood that an event will occur, while odds represent the probability that the event will occur divided by the probability that won’t.

Does calculating odds require a lot of math?
No, calculating odds does not require math. While probability and odds in more complex situations might require more indepth calculations, most of the math for odds calculations can be done by following simple formulas.
Final Thoughts
Knowing what odds are and how it works is an important part of making a successful bet. You can even apply these formulas to business or statistics.
Either way, whether you’re trying to show up your friends in Fantasy Football or simply want to make better bets, play it smart by analyzing the odds first!
 Glossary
 What Is Gross Monthly Income?
 What Is Management?
 What Is A Problem Statement?
 What Is Annual Net Income?
 What Is A Letter Of Transmittal?
 What Is Attrition?
 What Does White Collar Mean?
 What Does Blue Collar Mean?
 What Is Efficiency Vs Effectiveness?
 What Is A Dislocated Worker?
 What Is Human Resource (HR)?
 Thank You Letter Scholarships
 What Is Constructive Criticism?
 What Is A Quarter Life Crisis?
 What Is Imposter Syndrome?
 What Is Notes Payable?
 Types Of Communication
 Economic Demand
 Cost Benefit Analysis
 Collective Bargaining
 Key Performance Indicators
 What Is Gender Bias In A Job Description?
 What Is The Hidden Job Market?
 What Is The Difference Between A Job Vs. A Career?
 What Is A Prorated Salary?
 W9 Vs. 1099
 Double Declining Balance Method
 Divergent Vs Convergent Thinking
 Budgeting Process
 Types Of Intelligence
 What Is Bargaining Power?
 What Is Operating Capital?
 Difference Between Margin Vs Markup
 Participative Leadership
 Autocratic Leadership
 Authoratarian Leadership
 Situational Leadership
 Difference Between Generalist Vs Specialist
 Strategic Leadership
 Competitive Strategies
 Equity Vs Equality
 What Is Marginalization?
 Colleague Vs Coworker
 What Is The Glass Ceiling?
 What Are Guilty Pleasures?
 Emotion Wheel
 Nepotism In The Workplace
 Sustainable Competitive Advantage
 Organizational Development
 Communication Styles
 Contingent Workers
 Passive Vs Non Passive Income
 Choose A Career
 Formulas
 APR Formula
 Total Variable Cost Formula
 How to Calculate Probability
 How To Find A Percentile
 How To Calculate Weighted Average
 What Is The Sample Mean?
 Hot To Calculate Growth Rate
 Hot To Calculate Inflation Rate
 How To Calculate Marginal Utility
 How To Average Percentages
 Calculate Debt To Asset Ratio
 How To Calculate Percent Yield
 Fixed Cost Formula
 How To Calculate Interest
 How To Calculate Earnings Per Share
 How To Calculate Retained Earnings
 How To Calculate Adjusted Gross Income
 How To Calculate Consumer Price Index
 How To Calculate Cost Of Goods Sold
 How To Calculate Correlation
 How To Calculate Confidence Interval
 How To Calculate Consumer Surplus
 How To Calculate Debt To Income Ratio
 How To Calculate Depreciation
 How To Calculate Elasticity Of Demand
 How To Calculate Equity
 How To Calculate Full Time Equivalent
 How To Calculate Gross Profit Percentage
 How To Calculate Margin Of Error
 How To Calculate Opportunity Cost
 How To Calculate Operating Cash Flow
 How To Calculate Operating Income
 How To Calculate Odds
 How To Calculate Percent Change
 How To Calculate Z Score
 Cost Of Capital Formula
 How To Calculate Time And A Half
 Types Of Variables