What Are Decimal Odds?
Decimal Odds are most commonly used at betting exchanges like betfair. As the name suggests, they use decimals to represent the odds and automatically include your stake when working out your returns.
In our opinion it´s much easier to calculate your potential returns with decimal odds and it´s much easier to see which odds represent better value.
Decimal odds will look like this:
10.0 6.5 3.7 2.0 1.4
Any odds that are above 2.0 mean you will receive a multiple of your stake back (more than the amount you stake) if you win. In the example above, if you bet £10 at 10.0 your return would be £90 plus your original stake of £10
Odds below 2.0 mean you will receive a portion of your stake back if you win, so if you bet £10 at odds of 1.5 your return would be £5 plus your original stake of £10.
Like fractional odds, the higher the odds, the less chance your bet has of winning, but the potential return is greater.
If decimal odds are below 2.0 then they are known as odds on.
How to Calculate Decimal Odds
Unlike fractional odds, decimal odds include your original stake when you calculate the return. So in the following calculation:
£10 staked at 7.0
£10 x 7 = £70 Return
How to Calculate Decimal Odds without the Original Stake
With a lot of matched betting, the bonuses offered are quite often known as stake not returned. This means that you don´t receive the stake back (the bonus amount) if the bet wins. If this is the case, then if you bet £10 at 7.0 you wouldn´t receive £70 because this includes the stake (the bonus).
Therefore to calculate a stake not returned profit you would perform the following:
(Odds – 1) X stake
(7.0 -1) X £10
= £60 Profit