Decimal Odds Explained

Decimal odds are the most widely used odds format outside the United States. If you have ever seen odds displayed as 2.50, 1.80, or 3.00 at a sportsbook, you have encountered decimal odds. They are the standard format across Europe, Australia, Canada, and on betting exchanges worldwide.

This guide explains how decimal odds work, how to calculate payouts and profit, and how decimal odds compare to American odds and fractional odds. Whether you are new to sports betting or switching from another odds format, decimal odds are the simplest format to understand.

What Are Decimal Odds?

Decimal odds represent your total return for every 1 dollar (or unit) you stake, including your original stake. The number you see is a multiplier: multiply it by your bet amount and you get your total return if the bet wins.

For example, decimal odds of 2.50 mean that for every 1 dollar you bet, you receive 2.50 dollars back if you win. That includes your original 1 dollar stake plus 1.50 dollars in profit.

Decimal odds always display as a number greater than 1.00. The key reference point is 2.00:

• Odds above 2.00 indicate an underdog (less than 50% implied probability)
• Odds below 2.00 indicate a favorite (more than 50% implied probability)
• Odds of exactly 2.00 represent even money (50% implied probability)

This format originated in continental Europe and is sometimes called European odds. It is the default format on most international sportsbooks and virtually all betting exchanges because of its simplicity.

How to Read Decimal Odds

Reading decimal odds requires one simple rule: the number is your total return multiplier. Multiply your stake by the decimal odds and you know exactly what you get back.

Here are some examples:

• 1.50 means a 100 dollar bet returns 150 dollars total (50 dollars profit)
• 2.00 means a 100 dollar bet returns 200 dollars total (100 dollars profit)
• 2.50 means a 100 dollar bet returns 250 dollars total (150 dollars profit)
• 3.00 means a 100 dollar bet returns 300 dollars total (200 dollars profit)
• 5.00 means a 100 dollar bet returns 500 dollars total (400 dollars profit)

The higher the decimal number, the less likely the sportsbook believes that outcome will happen, and the more you stand to win.

Decimal Odds	Bet Amount	Total Return	Profit
1.25	$100	$125	$25
1.50	$100	$150	$50
1.91	$100	$191	$91
2.00	$100	$200	$100
2.50	$100	$250	$150
3.00	$100	$300	$200
5.00	$100	$500	$400

Calculating Payouts and Profit with Decimal Odds

Decimal odds make payout calculations straightforward because you only need basic multiplication.

Total Return = Stake x Decimal Odds

Profit = Stake x (Decimal Odds - 1)

Example 1: Betting on a Favorite

You bet 75 dollars on a team at decimal odds of 1.60.

Total Return = 75 x 1.60 = 120 dollars

Profit = 75 x (1.60 - 1) = 75 x 0.60 = 45 dollars

Example 2: Betting on an Underdog

You bet 50 dollars on an underdog at decimal odds of 3.50.

Total Return = 50 x 3.50 = 175 dollars

Profit = 50 x (3.50 - 1) = 50 x 2.50 = 125 dollars

Example 3: Betting at Even Money

You bet 100 dollars at decimal odds of 2.00.

Total Return = 100 x 2.00 = 200 dollars

Profit = 100 x (2.00 - 1) = 100 x 1.00 = 100 dollars

This simplicity is why many experienced bettors prefer decimal odds. There are no separate formulas for favorites and underdogs like there are with American odds. One formula works for every decimal odds value.

Use Our Odds Converter Calculator

The fastest way to work with decimal odds is to use our Odds Converter Calculator. Enter any decimal odds value and instantly see the equivalent in American and fractional formats, plus the implied probability.

You can also enter American or fractional odds and convert them to decimal format. The calculator shows your exact profit and total return for any stake amount.

Converting Decimal Odds to Implied Probability

Every set of odds represents an implied probability, which is the likelihood the sportsbook assigns to that outcome. Converting decimal odds to implied probability is the simplest conversion of any odds format.

Implied Probability = (1 / Decimal Odds) x 100

Example: What is the implied probability of 2.50?

Probability = (1 / 2.50) x 100 = 40%

This means the sportsbook estimates a 40% chance of this outcome occurring.

Example: What is the implied probability of 1.50?

Probability = (1 / 1.50) x 100 = 66.7%

This means the sportsbook estimates roughly a 2 in 3 chance of this outcome occurring.

Decimal Odds	Implied Probability	Interpretation
1.20	83.3%	Heavy favorite
1.33	75.2%	Strong favorite
1.50	66.7%	Clear favorite
1.91	52.4%	Slight favorite (standard vig line)
2.00	50%	Even money
2.50	40%	Moderate underdog
3.00	33.3%	Clear underdog
5.00	20%	Significant longshot
10.00	10%	Major longshot

Understanding implied probability helps you spot value bets. If you believe a team has a 50% chance of winning but the decimal odds are 2.50 (implying only 40%), that represents positive expected value. For a complete guide on converting between all odds formats, see our odds conversion guide.

Decimal Odds vs American and Fractional Odds

Decimal odds are one of three main formats used in sports betting. Here is how the same probabilities look across all three formats:

Decimal	American	Fractional	Implied Probability
1.33	-300	1/3	75%
1.50	-200	1/2	66.7%
1.67	-150	2/3	60%
1.91	-110	10/11	52.4%
2.00	+100	1/1 (evens)	50%
2.50	+150	3/2	40%
3.00	+200	2/1	33.3%
4.00	+300	3/1	25%

American odds use positive and negative numbers centered around 100 dollars. Positive odds show profit on a 100 dollar bet, while negative odds show how much you must bet to win 100 dollars. They require separate formulas for favorites and underdogs.

Fractional odds display as a fraction like 5/2 or 1/3. The numerator represents profit and the denominator represents the stake. They are traditional in UK horse racing and can be harder to compare quickly.

Decimal odds show total return per unit staked in a single number. No separate formulas, no fractions to interpret. This is why betting exchanges and most international sportsbooks default to decimal format.

If you bet across different platforms, you will encounter all three formats. Our odds conversion guide covers every conversion formula, and the odds converter calculator handles conversions instantly.

Common Decimal Odds You Will See

Certain decimal odds appear frequently across sportsbooks. Recognizing these values helps you assess opportunities faster.

1.91: The Standard Vig Line

Most point spreads and totals are priced at 1.91 on both sides at international sportsbooks. This is the decimal equivalent of -110 in American odds. The implied probability is 52.4%, and when both sides of a market are at 1.91, the combined probability is 104.8%. That extra 4.8% is the sportsbooks margin.

2.00: Even Money

Even money means your total return is double your stake. Bet 100 dollars, get 200 dollars back (100 dollars profit). This represents a 50% implied probability. True even money is rare because sportsbooks need to build in their margin.

1.50: Strong Favorite

Decimal odds of 1.50 represent a clear favorite with a 66.7% implied probability. This is the decimal equivalent of -200 in American odds. A 100 dollar bet returns 150 dollars total (50 dollars profit).

3.00: Clear Underdog

At 3.00, a 100 dollar bet returns 300 dollars total (200 dollars profit). The implied probability is 33.3%, equivalent to +200 in American odds. This is a common price for underdogs in two-way markets.

Why Exchanges Use Decimal Odds

Betting exchanges like Betfair and Smarkets display decimal odds by default. The format makes it easy to compare prices at a glance and calculate returns on partial fills. When you see odds of 2.04 versus 2.00, you can instantly tell the first price gives you a 4% better return per unit staked.

Tips for Working with Decimal Odds

Use 2.00 as your mental anchor. Just as +100 is the reference point for American odds, 2.00 is the dividing line for decimal odds. Anything below 2.00 is a favorite, anything above is an underdog. This helps you quickly gauge the market view of any outcome.

Remember that decimal odds include your stake. The most common mistake when switching from American or fractional odds is forgetting that decimal odds represent total return, not just profit. Decimal odds of 1.50 mean 0.50 units of profit per unit staked, not 1.50 units of profit.

Compare odds using decimal format. Decimal odds make it easy to spot the best price across sportsbooks. The difference between 1.95 and 1.91 is immediately clear: one returns 4 cents more per dollar staked. With American odds, comparing -105 to -110 requires more mental math.

Convert to implied probability for value assessment. Dividing 1 by the decimal odds gives you the implied probability instantly. If you think a team has a 50% chance and the odds are 2.20 (45.5% implied), that gap represents potential value. Our odds converter tool handles this automatically.

Learn the common equivalents. Knowing that 1.91 equals -110, 2.00 equals +100, and 3.00 equals +200 helps you navigate between US and international sportsbooks without constantly converting.

Frequently Asked Questions

What are decimal odds in betting?

Decimal odds are a format that shows your total return per unit staked, including your original stake. If you see odds of 2.50, it means a 1 dollar bet returns 2.50 dollars total (1.50 dollars profit plus your 1 dollar stake). They are the standard format in Europe, Australia, Canada, and on betting exchanges.

How do I calculate my payout with decimal odds?

Multiply your stake by the decimal odds to get your total return. For profit only, multiply your stake by the decimal odds minus 1. For example, a 50 dollar bet at 3.00 returns 150 dollars total (50 x 3.00). Your profit is 100 dollars (50 x 2.00).

What does 1.50 mean in decimal odds?

Decimal odds of 1.50 mean you receive 1.50 dollars for every 1 dollar you bet. On a 100 dollar bet, your total return is 150 dollars and your profit is 50 dollars. The implied probability is 66.7%, making this a clear favorite. In American odds, 1.50 is equivalent to -200.

How do I convert decimal odds to American odds?

For decimal odds of 2.00 or higher: American Odds = (Decimal Odds - 1) x 100. For example, 3.00 becomes +200. For decimal odds below 2.00: American Odds = -100 / (Decimal Odds - 1). For example, 1.50 becomes -200. Our odds conversion guide covers all conversion formulas.

Why do sportsbooks use decimal odds?

Decimal odds are popular because they are the simplest format for calculating returns. One multiplication gives you your total payout for any stake amount. There are no separate formulas for favorites and underdogs. Betting exchanges use decimal odds because they make comparing and adjusting prices straightforward.

What is the difference between decimal odds and fractional odds?

Decimal odds show your total return including your stake, while fractional odds show only your profit relative to your stake. Decimal odds of 2.50 equal fractional odds of 3/2. Many bettors find decimal odds easier to compare, while fractional odds are traditional in UK horse racing.

Are decimal odds better than American odds?

Neither format is inherently better. Decimal odds are simpler for calculations since one formula works for all odds values. American odds require separate formulas for positive and negative values but are standard at US sportsbooks. Most online sportsbooks let you switch between formats in your account settings.

What do decimal odds of 2.00 mean?

Decimal odds of 2.00 represent even money. A 100 dollar bet returns exactly 200 dollars (100 dollars profit plus your 100 dollar stake). The implied probability is 50%. This is equivalent to +100 in American odds or 1/1 (evens) in fractional odds.