Don’t get decimal odds? You’re not the only one. Many people don’t understand the difference between fractional and decimal odds.
It’s not rocket science though, thankfully. It’s incredibly simple…
So in this article, we’re going to explain decimal betting odds, the differences between decimal odds and fractions and how you can change between the two formats…
Decimal Odds: How Are They Displayed?
When betting with a bookmaker there are two different ways of displaying their odds; fractions or decimals. However, when you use a betting exchange there is only one format available; decimals.
Most people are used to seeing odds in the older fractional format. For example, a football team may be priced at 7/4. In decimal format, this would be 2.75.
At first glance, this may seem confusing, so we will explain how decimal odds work. However, it’s crucial to recognize the format you are using when placing your bets to avoid errors. This is important because 3/1 is not the same as 3.0 in decimal betting odds.
How to Change Between Fraction and Decimal Odds?
If you want to change between fractions and decimals with a bookmaker, there are usually two ways to do this:
- Default changes on your personal account – nearly all of the bookmakers now have a default setting under your account where you can set the odds format. Once this has been changed to decimal odds, you won’t have to do it again (so long as you’re logged in). Typically this is found under the ‘My Account’ section of your profile.
- Manual page changes – Different sites vary in layout but most of the time there is a small cog or settings icon on the header bar of the bookmaker’s site. If you want to change the odds format on that page you just need to give it a click and select decimal odds. This isn’t always the same place though as you may expect, for example, Betfair Sportsbook has this feature at the bottom of each page.
See how here:
Beyond this, you’ll need to understand how to convert the odds yourself. To do this it’s best to understand exactly what is happening – explained in a second.
How to Convert Decimal Odds into Profit?
This part is very simple, you take the stake you have placed and multiply by the decimal odds on display, this is your potential return (profit and stake returned).
For example:
if your stake is £10 and your decimal odds are 5.00. You multiply £10 by 5.00 (10 X 5 = 50), so your total return is £50.
How to Convert Fraction Odds into Profit?
Odds displayed as fractions show how much you will win on a bet, not including how much you put down. The first number in the fraction shows how much you will win in relation to the second number.
For example:
If you have odds of 4/1 and stake £10, you’ll receive £40 in winnings (not including your stake). Once you include the stake the total return is £50. Therefore, 5.0 and 4/1 are exactly the same, just in different formats.
How to Calculate Fraction Odds in Decimal Odds?
You probably already starting to understand, that showing you how to calculate decimals from fractions is probably the best way to clear things up…
Take these odds for example:
So if the fractional odds are 13/10 for Everton to win against Newcastle. You take the first number (13) and divide it by the second (10) before adding 1 for your stake.
Calculation: (( 13 ÷ 10 ) + 1 = 2.3 )
So 13/10 is the same as 2.3 in decimal odds. Let’s do another…
For Everton to draw, the odds are 12/5. So take the 12 and divide that by 5, then add 1.
Calculation: (( 12 ÷ 5 ) + 1 = 3.4 )
This means that 12/5 is a fractional representation of 3.4 in decimals. Makes sense, right?
Last of all, if Everton loses, the odds are priced at 5/2. Let’s run the maths:
Calculation: (( 5 ÷ 2 ) + 1 = 3.5 )
Running this calculation can get confusing for some, so we’ve added a table below for quick reference. If you need to check the difference between fractional and decimal prices at any point you can check back, possibly even bookmark this page.
Breakdown below:
How to Calculate Implied Probability:
You may have noticed an extra column in that nifty table above… implied chance.
Implied chance is a term that dictates the probability of something actually happening, presented in percentages. It has nothing to do with money and everything to do with the mathematical implications of the outcome actually happening. As you can imagine, betting odds have to follow suit (otherwise bookies would lose money). Sometimes you may have heard ‘true odds’ mentioned.
When somebody talks about ‘true odds’ they typically mean implied chance.
If you take a look at the image below, you may have noticed the implied chance note on Betfair’s Exchange charts. Right of the green arrow on the exchange website you can flip any chart into implied probability mode. Effectively, it’s the same chart but upside down because implied probability is reflective of betting odds – bet it decimal or fractional.
So how do you calculate the implied chance of a betting event? that’s not so easy. Tied in with all the variable factors that dictate chance. A clear example would be; if you had a coin flip, there are only two probabilistic outcomes. Meaning, it has to be one of the other, and with equal measure. This is why the probability of landing heads is 50%, which would represent 1/1 (evens) or 2.0 in decimals.
To win money in betting, you’d need a price higher than the implied chance of the event happening, and then a sample of bets large enough to iron out the creases. I’ll stop there though as the probability is a whole new post, a long one at that.
