Quick summary
This article explains everything you need to know about decimal odds, the most widely used and beginner-friendly betting format worldwide. We’ll explain how to read decimal odds, calculate payouts, and compare them to American and fractional odds. For more articles like this, visit our blog, The Advantage.
Want a simple odds system?
If you’ve ever opened a sportsbook and seen numbers like 1.75, 2.40, or 3.20, you were looking at decimal odds. They’re the simplest way to understand your total return (stake + profit) at a glance, making them a favorite for both beginners and seasoned bettors.
In this Pinnacle Odds Dropper guide, we'll break down how decimal odds work and show you how to use them to place smarter, more informed bets.
What are Decimal Odds?
Decimal odds are a betting format that shows the total amount you'll receive for every dollar wagered, including your original stake. The number represents your complete payout, making it the most straightforward way to understand potential returns from any bet.
Unlike American odds that use plus and minus symbols, decimal odds use simple numbers like 2.50, 1.80, or 4.25.
- Lower odds (1.50): Higher chance of winning, smaller profit.
- Higher odds (4.00): Lower probability, bigger payout.
Decimal odds originated in Europe and are now the global standard in markets like Australia, Canada, and online betting platforms.
How decimal odds work
Decimal odds simplify payout calculations because the number directly tells you how much you’ll receive for every $1 wagered.
How to read decimal odds
Example:
- Odds of 2.50 mean that for every $1 you bet, you’ll get $2.50 total ($1 stake + $1.50 profit).
- Odds of 1.50 mean a safer bet but smaller profit.
- Odds of 4.00 mean a riskier bet but a bigger reward.
Calculating your payout
Decimal odds make it easy to calculate payouts. It's done using this simple formula:
Total Payout = Stake × Decimal Odds
Profit = TotalPayout – StakeProfit
Example: You bet $50 on the Lakers to win at 2.40 decimal odds.
- Your Total return: $50 × 2.40 = $120
- And your profit: $120 - $50 = $70
So your total payout would be $120 total ($50 original stake + $70 profit)
Converting decimal odds to other formats
If you are familiar with decimal odds, you might encounter different odds formats, like American odds or fractional odds. Here’s how you can convert between them:
Decimal to American odds
- For decimal odds > 2.00:
American odds = (Decimal - 1) × 100
Example: 2.50 = (2.5 - 1) × 100 = +150 american odds
- For decimal odds < 2.00:
American odds = -100(Decimal - 1)
Example: 1.75 = -100(1.75 - 1) = -133 American odds.
Decimal to fractional odds
Fractional odds = Decimal - 1 , then express the answer as a fraction.
So for 2.50 decimal odds, you’d have 2.50-1 = 1.50 , express the final answer as a fraction; that'll be 32 .
Understanding implied probability
Decimal odds also reveal the implied probability of an outcome:
Implied Probability =1Decimal Odds × 100
Example:
For a 2.50 odds, implied probability = 12.5 × 100 = 40%
This calculation helps you understand what the sportsbook thinks about each outcome's likelihood of happening.
Decimal odds vs. American & fractional odds
Feature | Decimal odds | American odds | Fractional odds |
Format | Single number (e.g., 2.50) | Positive/negative (+150/-200) | Fractions (5/1, 10/3) |
Common regions | Europe, Australia, Canada | USA | UK, Ireland |
Shows stake? | Yes | No | No |
Ease of use | Very easy | Moderate | Harder |
Payout formula | Stake × Odds | Varies by sign (+/-) | Stake × (Num ÷ Den) |
Why professional bettors prefer decimal odds
- Simplicity: Decimal odds are straightforward to calculate, allowing bettors to quickly assess their potential returns.
- Clear payouts: They show the total payout (including the stake), eliminating confusion and making it easier to manage bets.
- Consistency: Decimal odds provide a consistent format, making it easier to compare odds across different sportsbooks and markets.
- Faster decision making: Professionals rely on speed; decimal odds help them make quick, informed betting decisions without complex calculations.
- Universal Use: Widely used across Europe, Asia, and online platforms, ensuring consistency when comparing betting opportunities globally.
Tips for bettors using decimal odds
Always calculate implied probability: Understand the sportsbook’s prediction to assess value.
- Compare odds across sportsbooks: Even a small difference in decimal odds can impact long-term profit.
- Focus on value, not just winners: Decimal odds make it easier to identify undervalued bets.
- Keep conversions handy: If betting on multiple platforms, knowing how to convert to fractional or American odds is key.
- Start small and learn: Decimal odds are beginner-friendly; practice with small bets first.
Conclusion
Decimal odds are the simplest and most widely used betting format worldwide, making them ideal for both beginners and professionals. By understanding how to read them, calculate payouts, and identify value, you’ll gain a clear edge in your sports betting strategy.
Frequently asked questions
Are decimal odds good for beginners?
Yes. Decimal odds are easier to understand because they directly show your total payout per dollar bet, making them ideal for beginners.
Can I use decimal odds for both pre-match and in-play betting?
Yes, decimal odds are used for both pre-match and in-play betting, offering a clear way to track odds throughout the event.
What sports typically use decimal odds?
Decimal odds are used across soccer, basketball, tennis, MMA, cricket, and nearly all online sportsbooks. They are the standard odds format in Europe, Australia, Canada, and most international betting sites.
Are decimal odds better for finding value bets?
Many bettors think so, because the format makes implied probability and payouts easier to calculate quickly, helping spot undervalued lines.
Can decimal odds be converted to American or fractional odds?
Yes. Decimal odds above 2.00 convert to positive American odds, and below 2.00 convert to negative odds. They can also be expressed as fractions, such as 2.50, converting to 3/2.