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Knowing how to convert odds is very important, especially if you want to be successful at sports betting.
Of course, not all of us are mathematicians though; our odds converter can make this process a lot easier.
If you don’t fully understand the different kinds of odds, what they represent and how to convert them (using an odds converter), you are doing yourself a great disservice by limiting your ability to make smart bets by using cross-market comparisons.
New to sports betting and the world of odds? Basically, all sport odds types are a slew of numbers that represent the probability of a specific outcome, alongside the amount of profit you will receive if your bet is successful. One of the absolute basics you need to understand in order to bet successfully is identifying value bets. You can also do this by using an odds converter. You will only be able to improve your betting technique if you have a good knowledge and understanding of odds conversions and implied probability. Once you know the basics, you will be able to apply it to all kinds of sports betting!
Keep reading to find the three most popular varieties of betting odds, along with how to convert them, their implied probabilities (and how to use an odds converter). By the end of this article, you will have a solid knowledge of odds conversions and implied probability that you will be able to use to improve your sports betting practices. You’ll then be ready for the next step to calculate your betting odds into profit.
How To Use Odds Converter Tool
Let’s start with the basics before we get too much into the maths of odds conversion. The simplest way to convert odds is, of course, with an odds converter. Odds converters can be used to instantly change odds and implied probability from one format to another.
For instance, if you choose to enter the format of American odds that are -150, then the odds converter will instantly convert these odds into decimal and fractional formats (alongside the implied improbability of them). To understand all of this better, it is essential to understand how to work out how much profit a bet can make you accordingly.
Popular Odds Formats
Here are the names of the top 3 most popular betting formats:
American odds are one of the most common formats and are sometimes also called Moneyline odds. American odds come in two main varieties, namely Plus American odds and Minus American odds.
Minus American odds are the odds that are shorter than even money (which means not making a profit or loss). For example, the LA Lakers have odds of -150 for an upcoming NBA game. This means that in order to win $100, you have to bet $150.
The opposite, Plus American odds, means that the odds are not even money anymore. For instance, the Boston Bruins have odds of +175 to win an NHL game. This means that if you bet $100, you will win a profit of $175 if you are correct.
How do you convert American odds to probability effectively?
If you want to use maths instead of an odds converter, you can convert Minus American odds to their implied probability using the following equation:
Probability = Odds / (Odds +100)
If we are betting on the Red Sox at odds of -150, we convert these odds to their implied probability as follows:
Probability = 150 / (150 +100)
Probability = 150 / 250
Probability = 0.60 (therefore 60%)
Basically, the bookmakers are saying that they believe the Red Sox have a 60% chance of winning the game. If you think the odds of the Red Sox winning is a lot greater than that, then you have found a value bet!
If you want to use maths instead of an odds converter, converting Plus American odds to their implied probability is very similar and uses the below equation:
Probability = 100 / (Odds + 100)
For example, if you are betting on the Toronto Raptors at odds of +175, you will calculate the implied probability as follows:
Probability = 100 / (175 + 100)
Probability = 100 / 275
Probability = 0.364 (i.e 36.4%)
Now the bookmakers are saying that the Toronto Raptors have a 36.4% shot at winning the game. Once more, if you believe the chance of them winning is a lot greater than that as is reported, then you have identified a value bet!
Decimal odds are popular mostly in Australian and European sportsbooks. They are sometimes also called European odds. These odds are shown in a decimal format, like 1.25, for example.
Decimal odds show you the amount that you would win for every $1 that you bet. If you want to determine how much your profit will be, simply minus the stake from the bet.
For instance, if you bet $10 on the New England Patriots to win an NFL game with odds of 1.75, your winnings would be $17.50. You then subtract your initial bet amount of $10, and your profit from this bet will be $7.50.
How do you convert Decimal odds to probability?
If you want to use maths instead of an odds converter, you can convert Decimal odds to their implied probability using the following equation:
Probability = 1 / Decimal odds
For instance, imagine you bet on the Chicago Bears with the odds of 1.75. You will then calculate the probability as follows:
Probability = 1 / 1.75
Probability = 0.5714 (i.e 57.14%)
Basically, the bookmakers are saying that they believe the Chicago Bears have a 57.14% chance of winning the game. If you think the chances of the Chicago Bears winning is a lot greater than that, then you have found a value bet!
Fractional odds are the oldest and most traditional form of odds. They are mostly still used in the United Kingdom, especially for horse race betting accordingly.
Fractional odds show what you will win for every $1 that you bet. For instance, if the odds are 4/5, this means that for every $5 that you bet, you could win a profit of $4 (so, $9 in total winnings).
If for example, you bet on the Miami Heat with odds of 3/1 to win in an NBA game, you will win 3 times your initial bet if you are right. So, in this case, you will win $3. If you had bet $10 on Miami Heat to win, you would have won $30.
How do you convert Fractional odds to probability?
If you want to use maths instead of an odds converter, you can convert Fractional odds to their implied probability using the following equation:
Probability = Denominator / (Denominator + Numerator)
e.g. if you are betting on the New York Knicks with fractional odds of 5/2, you will calculate the probability as follows:
Probability = 2 / (5+2)
Probability = 2 / 7
Probability = 0.2857 (i.e 28.57%)
Here, the bookmakers are telling you that they think that the Knicks have a 28.57% shot at winning the game. If you think the chances of the Knicks winning is a lot better than that, then you have found a value bet accordingly!
Converting Odds Between Different Formats
In order to start converting odds between different formats, you first need to determine their implied probability (as we discussed above). After you have done this, you simply need to convert the probability back to the odds that you want.
Implied Probability To American Odds Conversion
Remember, there are two types of American odds – Plus American odds and Minus American odds.
If the implied probability is lower than 50% (or 50% on the dot), you will convert it to Plus American odds. If the implied probability is higher than 50%, you will convert it to Minus American odds.
Plus American Odds Conversion
If you think, for instance, the Denver Nuggets have a 40% chance of winning their next NBA game, you can convert that probability to Plus American Odds using this equation:
Odds = ((1 / probability) * 100) – 100
What then are the odds for the Nuggets to win?
Odds = ((1 / 0.40) * 100) – 100
Odds = ((2.5) * 100) – 100
Odds = (250) – 100
Odds = 150
The odds for the Nuggets to win are +150.
Minus American Odds Conversion
Imagine that you believe that the Oakland Raiders have a probability of 60% to win an NFL game but you want to know those odds in American format, you will convert it as follows:
Because the probability is bigger than 50%, you will need to convert it to Minus American odds. For example:
Odds = 100 / ((1 / probability) – 1)
What then are the odds for the Raiders to win?
Odds = 100 / ((1 / 0.60) – 1)
Odds = 100 / (1.6667 – 1)
Odds = 100 / 0.6667
Odds = 150
The odds for the Raiders to win are -150.
Probability To Decimal Odds Conversion
Converting probability to Decimal odds is a lot simpler than to American odds. To convert implied probability to Decimal odds, use the following equation and example:
Odds = 1 / Probability
e.g. If you think the Dallas Cowboys have a 65% chance of winning the SuperBowl, you can convert this probability to Decimal odds like this:
Odds = 1 / 0.65
Odds = 1.54
The Decimal odds for the Dallas Cowboys to become SuperBowl champions is 1.54.
Probability To Fractional Odds Conversion
This is probably the trickiest of odds converting (and should rather be done with an odds converter). To convert implied probability to Fractional odds, use this equation:
Odds = (1 / (probability) – 1) / 1
After you have done that, multiply the numerator to make it a whole number and multiply the denominator by how many times it took to round the numerator up to a whole number.
e.g. You think the Boston Celtics have a 40% chance of winning their next game. You will convert this implied probability to Fractional odds like this:
Odds = (1 / (0.40) – 1) / 1
Odds = (2.50 – 1) / 1
Odds = 1.50 / 1
We now know that our odds are 1.50 / 1. Now, multiply the numerator (1.50) to a whole number. With this specific number, the nearest whole number we can get to using multiplication is 3. We had to multiply the numerator by 2 to get there. Next, you times the denominator (1) by the amount we multiplied on the numerator (2). This means the denominator will be 2.
Therefore, the Fractional odds for a probability of the Celtics winning at 40% is 3/2.