Online Betting » Betting Guide » Guide to Understanding Decimal Odds: How Decimal Odds Work in 2024

Guide to Understanding Decimal Odds: How Decimal Odds Work in 2024

Dave Kuzio
Editor
Fact checked by: Jim Knight
Publish Date: 01.07.2024

You cannot place a bet without having any odds in the first place. Understanding how odds work is essential and the different types of odds available to you.

Decimal odds are popular with UK bookmakers and are also used prominently in betting exchanges, but do you fully understand how they work and what they mean? Hopefully, this guide will make things a little bit clearer for you.

What Are Decimal Odds? 

Decimal odds can sometimes be known as European odds and people like them because they are simple to understand. The decimal number indicates how much money you will receive from every £1 you stake.

When you are studying what bets you wish to put on, the lower figure determines the favourite, while the higher number is for the underdog.

The decimal odds tell us two things. First, the price that allows you to calculate what your winnings would be, and the probability which indicates the likelihood of that happening.

How To Understand Decimal Odds

Every punter is different when it comes to which odds they prefer. Some say they find the decimal odds easier, and they are simple to understand once you master the basics.

Here is a brief look at how the decimal odds work and what profit you would make using this system.

OddsStakeOutcome
10.00£10£100 profit + £1 stake
6.00£10£50 profit + £10 stake
3.25£10£22.50 profit + £10 stake

Working Out The Probability Of Decimal Odds Betting

It doesn’t matter what kind of odds you use, whether it be decimal, fractional or American. You will always be able to work out the probability of that bet being a winner.

The best explanation for calculating the probability of decimal betting odds would be to divide one by the decimal odds and then multiply by 100 – (1/A) x 100 = Probability.

Decimal Odds(1/A) x100 =%AnswerProbability
10.00(1/10)x100 =1010%
8.00(1/8)x100 =12.512.5%
2.50(1/2.50)x100 =4040%
1.73(1/1.73)x100 =57.857.8%
1.18(1/1.67)x100 =84.784.7%

How To Convert Decimal Odds To Fractional And American Odds

You should know by now that when betting on soccer you can use decimal odds, fractional odds or American odds. It is entirely down to your preference which ones you use. You could use all three on separate bets if you wanted to. The main thing is that you understand all your options.

Here I am going to explain in simple terms how you can convert your decimal odds so that you can understand them in fractions or for the American betting markets.

Below you will see the formulas used and an example of how to convert your decimal odds into fractional or American odds:

Convert To Fractional Odds

Converting decimal odds to fractional odds is quite complicated at first, but you will soon get the hang of it. There are two steps to this format in order for you to get the correct fraction odds.

Let’s say the decimal odds are 3.40, you will need to subtract that by one to make it 2.40. That makes the odds 2.40/1 and seeing as bookmakers do not deal in decimals on fraction odds, you will need to change this.

You will now turn this into a simple fraction without a decimal. Multiply 2.40 until you reach a rounded number and that will be your fraction.

  • For example, (2.40 x 2 = 4.80, 2.40 x 3 = 7.20, 2.40 x 4 = 9.60, 2.40 x 5 = 12)

The number you have is 12 and the amount of times you multiplied is 5 so the fraction odds will be 12/5.

Convert to American Odds

Converting decimal odds to American is not as complicated as the fractional odds, but it still needs explaining.

American odds have positive and negative sections, so I will explain both sides of the coin.

To convert decimal odds of 2.00 or greater you will need to use the following formula:

(Decimal -1) x 100

  • Example: Decimal Odds 3.50 – (3.50 -1) = 2.50 x 100 = +250

To convert decimal odds of 2.00 or less you will need to use the following formula:

(-100)/(Decimal -1)

  • Example: Decimal Odds 1.40 – (-100)/(1.40-1) = (-100)/0.40 = -250

Decimal Odds Pros And Cons

  • Easy to understand
  • Clear payout
  • Requires no mathematical calculations
  • Not available on every website

Final Say On Decimal Odds

Without sounding like a broken record. Betting odds is all about your own preference. Use whatever suits you the most. I prefer looking at a fraction when it comes to betting.

Decimal odds are popular because you do not need to think a lot about them. The figure you see is the amount you will win for every £1 you stake. You are being told straight from the off what is on the table.

Some people like it that simple and to the point, whereas others like to work it out in their heads to make it more appealing. Either way, you are getting the same odds to bet on, they just read a little differently that’s all.

Decimal Odds FAQ

🔢 Do You Have To Use Decimal Odds?

No, you do not have to use decimal odds. Whatever odds system you use is up to you and you can change the settings in your betting account.

🇪🇺 What Countries Use Decimal Odds?

Decimal odds are often referred to as European odds as they are mainly used across Europe. New Zealand, Canada and Australia are just a few countries known to use the decimal system.

❓Which Odds System Should I Use?

You have three main ones to choose from – decimal, fractional or American. All three of them have their merits, but it is all about choice. Pick the one that helps you figure out your winnings easiest.

⚙️ Are Decimal Odds Automatically Available On Betting Sites?

Fractional odds are the most preferred on UK sites, but if you do not want to use that system go to your settings and change the format to decimal and save your account. The next time you log in, your odds will be decimal.

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