Decimal Odds | What Are Decimal Odds? How Do They Work?

Posted on by Toby @ Punter2Pro
  • Decimal odds represent the total payout a bettor will receive, including their original stake, for each unit wagered.

What Are Decimal Odds?

Decimal odds, sometimes referred to as European odds, are the most widely used odds format in the world. They are the standard format used throughout much of Europe, Australia, and on most betting exchanges.

Unlike fractional odds, decimal odds represent the total return from a successful bet, including the original stake. This makes them one of the simplest odds formats to understand and compare.

Decimal odds are displayed as a number, such as 1.50, 2.00, or 5.00. The higher the decimal odds, the greater the potential return from a successful bet. For example, odds of 2.00 mean a successful £10 bet would return £20 (£10 profit plus the original £10 stake).

Because decimal odds represent the total return, they are particularly useful when comparing prices between bookmakers. Many bettors also find them easier to convert into implied probabilities and use when assessing betting value.

How To Calculate Returns From Decimal Odds

To calculate the total return from a decimal odds bet, use the following formula:

Total Return = Stake × Decimal Odds

For example, a £20 bet at odds of 2.75 would generate:

  • Total Return = £20 × 2.75 = £55
  • Profit = £55 − £20 = £35

Most modern betting sites calculate returns automatically, but understanding the formula can help when comparing prices and assessing potential payouts.

Decimal Odds & Implied Probability

Decimal odds can be converted into an implied probability, which represents the likelihood of an outcome occurring according to the bookmaker’s price. The formula is:

Implied Probability = (1 ÷ Decimal Odds) × 100

Examples:

  • 1.50 = 66.67%
  • 2.00 = 50.00%
  • 3.00 = 33.33%
  • 5.00 = 20.00%

Implied probability can be useful when comparing betting opportunities and assessing value. However, bookmakers build a profit margin into their odds, meaning the implied probability does not necessarily represent the true probability of an outcome occurring.

To learn more about this concept, see our guide to Implied Probability.

Pros & Cons of Decimal Odds

Decimal odds are the most widely used betting format in the world and are favoured by many bettors because of their simplicity. However, some users still prefer alternative formats such as fractional or American odds.

Pros

  • Easy to Understand

    Decimal odds show the total return from a successful bet, including the original stake. This makes them one of the simplest odds formats to learn and use.

  • Easy To Compare Prices

    Because decimal odds are displayed as a single number, it is straightforward to compare prices between bookmakers and identify the best available odds.

  • Widely Used Internationally

    Decimal odds are the standard format throughout much of Europe, Australia, and many online betting platforms. This makes them familiar to a large number of bettors worldwide.

  • Simple to Convert to Percentages

    Decimal odds can be quickly converted into implied probabilities using a straightforward formula. This makes them particularly useful for bettors who assess value.

Cons

  • Less Traditional In The UK

    Many UK horse racing bettors still prefer fractional odds, which have been used for decades throughout the British betting industry. As a result, some bettors may find decimal odds less familiar or intuitive.

  • Provides No Immediate Profit Figure

    Decimal odds show the total return from a successful bet rather than the profit alone. Some bettors prefer formats that make potential profit easier to identify at a glance.

  • Can Be Less Intuitive At Extreme Prices

    Very short prices such as 1.05 or very large prices such as 51.00 can be difficult for new bettors to interpret quickly. Understanding the risk and reward often requires more familiarity with the format.

  • Requires Some Calculation For Profit

    While calculating returns is straightforward, bettors must subtract their original stake to determine the profit from a successful bet. Some formats communicate profit more directly.

Find The Right Betting Site

More Odds Formats

Implied Probability | The Chance Of An Event Occurring
Fractional Odds | What Are Fractional Odds? How Do They Work?
American Odds | What Are US Moneyline Odds? How Do They Work?
Hong Kong Odds | What Are HK Odds? How Do They Work?
Malaysian Odds | What Are Malay Odds? How Do They Work?
Indonesian Odds | What Are Indonesian Odds? How Do They Work?
Toby @ Punter2Pro
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