If you are new to sports betting, one of the first things you should learn is how betting odds work. Whether you are looking at football betting odds or odds for any other sport, they all serve the same purpose: showing you how much money you stand to win and what chance the online bookmaker believes the outcome has.
If you are new to the betting world, you might be wondering how betting odds work or how to read betting odds. This APWin Academy guide will explain everything in clear and easy words. It will cover the three main types of odds, which are decimal, fractional and moneyline, with examples and simple tips you can follow when placing bets.
What Are Betting Odds?
Betting odds are simply numbers that represent two things: the probability of an event happening and the potential return on your stake. They are the foundation of sports betting. Without odds, there is no way to know how much money you will win if your prediction is correct.
For example, in a football match between Manchester United and Chelsea, the odds assigned to each team reflect their expected chance of winning. Higher odds suggest the team is less likely to win, but you will win more money if they do. Lower odds suggest the team is more likely to win, but the payout will be smaller.
When you calculate odds or look at different formats, the numbers may appear confusing at first, but once you understand the basics, reading them becomes second nature.
The Three Most Common Types of Odds
Let’s break down the three most common types of betting odds so you can understand how each one works and how to use them effectively.
Decimal Odds
Decimal odds are the most straightforward format and are widely used in Europe, Australia, Canada, India and in many parts of Africa. They are especially common for soccer betting odds and are easy to calculate. With decimal odds, the number shown tells you the total returns on your bet, including your stake. To calculate, you simply multiply your stake by the decimal number.
For example, if Arsenal has decimal odds of 2.50 to win and you stake $100, your total return will be $100 × 2.50 = $250. Out of this, $150 is profit, and $100 is your original stake.
This format makes it easy to see your full payout right away. In decimal odds, figures closer to 1.00 generally indicate stronger favourites, while higher numbers suggest underdogs. However, this isn’t always exact, since bookmakers build in a margin and some markets also include the possibility of a draw.
Fractional Odds
Fractional odds, sometimes called British odds, are mostly seen in the UK and Ireland, particularly in horse racing and football betting odds. These odds are shown as fractions such as 5/1, 7/2, or 11/10. The first number (numerator) shows the profit, while the second number (denominator) shows the stake required to get the profit.
For example, odds of 5/1 mean that for every $100 you bet, you will win $500 in profit plus your stake back for a total return of $600. If the odds are 4/5, it means you must stake $500 to win $400 profit, so a $100 bet would bring back $180 in total.
Fractional odds may look confusing at first, but once you understand the ratio, they are quite simple to read. They also make it clear whether you are backing the favourite or the underdog. Favourites usually have odds like 4/5, while underdogs will have odds like 5/1.
Moneyline Odds
Moneyline odds, also called American odds, are the standard format used in the United States for all sports, from basketball and baseball to football. Unlike decimal or fractional odds, these odds always include either a plus (+) or a minus (-) sign.
A plus sign means the team is the underdog, and the number shows how much profit you will make on $100 bet.
A minus sign means the team is the favourite, and the number shows how much you need to stake to win $100
For example, if Nigeria is +300 to beat Brazil in a soccer match, it means a $100 bet will return $400 in total ($300 profit plus $100 stake).
If Brazil is -150, it means you must stake $150 to win $100, for a total return of $250.
Betting Odds Comparison Table
To make things easier, here’s a side-by-side comparison of the three main betting odds formats - decimal, fractional, and moneyline - showing how they work, where they are used, and what a $100 bet would return.
How to Calculate Odds and Probability?
Another important aspect of understanding sports betting odds is knowing how to convert them into implied probability. This helps you judge whether the bet offers good value.
The formulas for calculating the 3 most common odds types can be found below.
For decimal odds: Probability = 1 ÷ decimal odds. Example: 2.00 = 50% chance.
For fractional odds: Probability = denominator ÷ (numerator + denominator). Example: 4/1 = 1 ÷ (4+1) = 20%.
For moneyline odds: If positive, probability = 100 ÷ (odds + 100). If negative, probability = odds ÷ (odds + 100). Example: –150 = 150 ÷ (150+100) = 60%.
Football Betting Example
Imagine a Champions League match between Real Madrid and Bayern Munich. The bookmaker offers the following:
If you bet $100 on Real Madrid using decimal odds, you could win $220 in total. The same bet shown as 6/5 fractional odds would give you $120 profit on a $100 stake, which is still $220 in total. The +120 moneyline shows you will win $120 for every $100 bet, which also comes to the same amount.
Tips Regarding Betting Odds
Understanding the formats is only half the job; knowing how to apply them in real betting situations is what really matters.
Here are some best tips to keep in mind:
Stick with decimal odds if you’re new. They are the easiest to read and calculate.
Check multiple bookmakers. Soccer betting odds can vary slightly across sites, and even a small difference can increase your profits over time.
Before placing a bet, check if your own estimate of the team’s chances is better than what the odds suggest.
Betting odds can tempt you into chasing high payouts, but remember that higher odds also mean lower probability.
Switch formats when needed. If you are betting on international sites, being able to read fractional or moneyline odds ensures you don’t miss opportunities.
Conclusion
Now that you know how the odds work, you will feel more confident once you start your betting adventure. Decimal odds give you a clean multiplier, fractional odds keep traditional betting alive, and moneyline odds show favourites and underdogs clearly. Once you learn how to calculate odds, convert between formats, and judge probability, you gain a real advantage.
So, whether you are checking football betting odds for the Premier League game, soccer betting odds for international matches, or moneyline odds for an NBA game, remember that the numbers are simply a way to measure risk and rewards. Read them carefully, compare across sites, and always bet smart.
