Decimal odds explained: from price to payout in three steps
A decimal price multiplied by your stake gives the return, with your stake already inside it, and the profit is that return minus the stake. Dividing 1 by the price gives the implied probability. This page walks through three assumed examples, one for each step, and links to the calculator for your own numbers.
Step 1: return = stake times odds
Take the stake and multiply it by the decimal odds. The result is the total paid back if the bet wins, including your stake.
A stake of A$20.00 at 3.40 returns A$68.00.
Bottom line: the return already contains your stake.
Step 2: profit = return minus stake
Subtract the stake to see what you gain. A$68.00 less A$20.00 is A$48.00.
A loss costs the full stake, whatever the odds. Odds of 1.60 or 7.00 change the return, not the loss.
Bottom line: profit excludes your stake; a loss is the whole stake.
Step 3: implied probability = 1 divided by odds
Divide 1 by the odds: 1 / 3.40 is 0.294, or 29.4%. It is the chance the price implies, before any margin.
Add up the implied probabilities of all outcomes in a market and you get more than 100%. The extra is the margin. In a two-way market priced at 1.90 on each side, 1/1.90 twice is 1.053, a margin of 5.3%.
Bottom line: a price implies a probability; the surplus over 100% is margin.
Three examples
| Stake | Decimal odds | Return | Profit | Implied probability |
|---|---|---|---|---|
| A$20.00 | 3.40 | A$68.00 | A$48.00 | 29.4% |
| A$50.00 | 1.60 | A$80.00 | A$30.00 | 62.5% |
| A$12.50 | 7.00 | A$87.50 | A$75.00 | 14.3% |
Illustrative example, not a price.
Which format an operator displays is set on its own pages. Status: Not confirmed on 2026-11-13.
Bottom line: the same three steps work for any decimal price.
Three slips to avoid
- Return is not profit. The return includes your stake. Profit is what is left after you subtract it.
- Implied probability is not the true chance. It is what the price implies, and it includes the margin.
- Low odds are not safe. Odds of 1.20 still lose the whole stake when the bet loses.
The calculator accepts odds of 1.01 or more and shows an error below that.
Bottom line: read the price as a return, a profit and an implied chance.
Go further
Work with your own numbers in the expected value calculator. Read more on implied probability and bookmaker margin (overround).
Bottom line: the calculator is educational and not a tip.
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FAQ
How do I work out the return on decimal odds?
Multiply the stake by the odds. A stake of A$20.00 at 3.40 returns A$68.00, which includes the A$20.00 stake.
What is my profit on a winning bet?
Return minus stake. In the example, A$68.00 less A$20.00 is A$48.00.
What is implied probability?
It is 1 divided by the decimal odds. Odds of 3.40 imply 29.4%, before any margin.
Why do implied probabilities add up to more than 100%?
The surplus is the bookmaker's margin. In a two-way market at 1.90 on each side the total is 105.3%, a margin of 5.3%.