Parlays combine multiple selections into one ticket where every leg must win for a payout. This article breaks down how a 4 leg parlay payout is calculated in practical terms, shows the American-to-decimal conversion rules, walks through worked examples, and offers bankroll and risk guidance. Readers will learn how to report both total return and net profit, how to estimate a ticket's hit probability carefully, and when a parlay is an appropriate tool in a disciplined approach to sports prediction. The math is straightforward and consistent across platforms, so understanding these steps helps you check calculators and interpret payouts with confidence.

A 4 leg parlay's payout is the product of four decimal multipliers applied to your stake.

Convert American odds to decimal, multiply the decimals, multiply by stake, then subtract the stake for profit.

Multiplying implied probabilities gives a naive hit estimate that can be biased by vig and correlation.

What a 4 leg parlay is and why the math matters

Definition and common formats for a 4 leg parlay

A 4 leg parlay is one bet that links four separate selections, where every leg must win for the ticket to pay. The entire stake sits behind the combined set of outcomes, so the payout grows fast when you combine multiple winners into the same ticket. Readers should keep a clear distinction between total return, which includes the original stake, and net profit, which is the return minus the stake.

Calculating a 4 leg parlay payout requires converting displayed American prices into decimal returns, then multiplying those returns together and applying your stake. This decimal-return approach underlies typical parlay math and is the standard method described in modern betting education resources, where the final multiplication yields the total payout before subtracting the stake for profit Action Network parlay guide.

The format of a 4 leg parlay can vary: four moneyline selections, point-spread legs, totals, or a mix of markets. Whatever the mix, the payout math treats each leg as a factor in the product of decimal returns, so the composition affects both payout size and the implied difficulty of the ticket.

Because the stake is included in the total returned value shown by calculators, it is important to label outputs clearly when you check a parlay payout calculator: one number is the total return, a second is the net profit. Reputable parlay calculators make that distinction explicit so users can know what they would keep versus what they would receive including their stake TheLines parlay calculator page. See the Action Network parlay calculator here.

Step-by-step: how to calculate a 4 leg parlay payout

Step 1: convert each American price to decimal

Step 1 is converting each American moneyline price into a decimal multiplier. For a positive American price, the decimal equals 1 plus the price divided by 100. For a negative American price, the decimal equals 1 plus 100 divided by the absolute value of the price. These formulas are the standard conversion rules used in payout examples and calculators Investopedia moneyline odds guide.

Step 2: multiply the four decimals and multiply by stake

Step 2 multiplies the four decimal values together to get a combined decimal. Multiply that combined decimal by your stake to get the total return. Keep the chaining clear: decimal1 times decimal2 times decimal3 times decimal4 gives combined decimal, then combined decimal times stake equals total returned amount.

Practice calculating parlay payouts with clear, labeled stakes

Try the worked examples below with a small, clearly labeled stake so you can compare total return and net profit in each case.

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Step 3 is subtracting the stake to show net profit. Many users expect the payout number to be pure winnings, so label both numbers clearly: total return equals stake plus winnings, and net profit equals winnings only. Double checking these labels avoids the common confusion between receiving the stake back or losing it.

Side by side chart showing American odds and decimal conversions for a 4 leg parlay on a dark minimalist Funded Plays style background

When you follow these steps manually or with a calculator, the process is the same regardless of whether legs are favorites or underdogs. The decimal factors simply scale the combined return, which is why mixing plus- and minus-money legs yields proportional changes to the final payout.

Converting American odds and implied probability for each leg

Formulas for positive and negative American lines

The conversion formulas are straightforward: for positive odds written as +A, decimal = 1 + A/100. For negative odds written as -A, decimal = 1 + 100 divided by the absolute value of A. These conversions are baseline rules found in odds conversion primers and operator help documents Pinnacle odds conversion guide.

How to translate decimal odds into implied win probabilities

To get an implied probability from American odds, use 100 divided by the sum of the positive price plus 100 for a positive price, and for a negative price divide the absolute value of the negative price by the absolute value plus 100. Those implied-probability formulas map directly from American to percentage chance and are commonly used when readers want to estimate how likely a single leg is to win.

How do I calculate the payout of a 4 leg parlay from American odds?

Convert each American price to a decimal with the standard formulas, multiply the four decimal values to get a combined multiplier, multiply that by your stake for total return, and subtract the stake to find net profit.

Keep in mind that multiplying implied probabilities across four legs gives a simple approximate chance that all four win, but this naive product ignores bookmaker vig and any correlation between legs; both factors bias the estimate away from the true probability in real markets Wizard of Odds parlay primer.

Worked examples: calculate three 4 leg parlay scenarios

Scenario A: four favorites

Example calculations help make the process concrete. Suppose you place a 4 leg parlay with a $10 stake where each leg is a moderate favorite at -150, -140, -130, and -120. Convert each to decimals: -150 -> 1 + 100/150 = 1.6667, -140 -> 1.7143, -130 -> 1.7692, -120 -> 1.8333. Multiply the decimals to get the combined decimal and then multiply by the $10 stake to get total return. The precise multiplication and labeling of total return and net profit show how several favorites combine into a modest payout increase rather than the large jumps typical when underdogs are involved Action Network parlay guide.

Scenario B: four underdogs

For a ticket of four underdogs, use positive American prices. Suppose the legs are +200, +180, +150, and +220 with a $10 stake. Convert to decimals using 1 + A/100: +200 -> 3.00, +180 -> 2.80, +150 -> 2.50, +220 -> 3.20. Multiply those decimals to reach a much larger combined decimal, then multiply by the stake for total return and subtract the stake to see net profit. This example illustrates how underdogs amplify payout through multiplicative scaling. See the USA TODAY parlay calculator here.

Verify a 4 leg parlay payout from stake and four American odds

Enter American odds with sign

Scenario C: mixed favorites and underdogs

A mixed ticket shows how plus and minus prices scale together. Example: $10 stake with legs -120, +180, -140, +150. Convert to decimals: -120 -> 1.8333, +180 -> 2.80, -140 -> 1.7143, +150 -> 2.50. Multiply the decimals, multiply by $10 to get total return, and subtract $10 for net profit. Comparing the three scenarios demonstrates that the underlying math is identical across ticket types and that the final payout is the product of the decimal multipliers applied to the stake, a fact reproduced by reputable parlay calculators TheLines parlay calculator.

Estimating a 4 leg parlay's chance to hit and practical limits

Multiplying leg probabilities as an approximation

A common way to estimate how likely a 4 leg parlay is to hit is to multiply the implied probabilities of each leg. If leg A has 60 percent implied chance, B 55 percent, C 65 percent, and D 50 percent, the naive estimate that all four happen is 0.60 times 0.55 times 0.65 times 0.50. This gives a ballpark figure that is useful for rough comparisons and sizing decisions.

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That naive multiplication assumes independent legs and no bookmaker margin. In practice, vig compresses fair probabilities and correlation between legs, such as same-game props or linked game outcomes, can make the product poor as an estimator. Operator help material and betting guides warn readers to treat the multiplied probability as an approximation, not a market truth DraftKings help center parlay explanation.

Bankroll rules and decision criteria for using a 4 leg parlay

When a parlay can be an efficient risk-reward choice

Deciding whether to use a 4 leg parlay depends on your edge per leg, the fraction of your bankroll you are willing to risk, and how correlated the legs are. Parlays can be efficient when each leg has a demonstrable edge and legs are independent so the combined expected value can beat other allocations. However, the multiplication of uncertainty makes parlays a higher variance choice, so stake sizing should reflect that reality. See Funded Plays homepage.

When to prefer singles or smaller parlays

Practical rules of thumb include limiting any single parlay stake to a small percentage of your bankroll, avoiding same-game correlated legs, and preferring single bets when you expect consistent value on individual markets. Operator help documents and strategy primers recommend treating parlays as a strategic tool for specific situations rather than a routine way to chase large payouts Wizard of Odds parlay primer.

Common mistakes and how to avoid them

Confusing total return with profit

A very common error is interpreting a calculator's total return as net profit. Always subtract the stake to get profit and label your outputs. Double-check conversions and labeling when you compute payouts manually or with a tool, and use calculators that clearly separate total return and net winnings to avoid this mistake Action Network parlay guide.

Minimal 2d vector three panel layout showing three worked parlay scenarios with stake as chip stacks and final net profit highlighted in accent color f5e79d for a 4 leg parlay

Another frequent issue is assuming leg independence. Same-game legs or outcomes affected by the same event are correlated and invalidate simple probability multiplication. Also adjust for vig because implied probabilities from American odds include the bookmaker margin, and multiplying those probabilities without correction biases the parlay hit estimate Pinnacle odds conversion guide.

Advanced considerations: vig, display differences, and correlated legs

How vig changes implied probabilities

Bookmaker vig inflates the raw prices so that implied probabilities sum to more than 100 percent. That house edge means the product of implied probabilities underestimates how unfavorable a parlay is compared with fair odds. Adjusting for vig or using market-implied fair probabilities gives a clearer view of expected value before placing a multi-leg ticket.

Why operator displays differ but math is the same

Despite differences in how operators display prices, the underlying decimal-return multiplication is what determines payouts. Help centers and educational guides explain that American odds are an alternative display and that systems convert those prices into decimal multipliers behind the scenes to compute combination returns Action Network parlay guide.

Quick checklist, tools, and next steps

Step-by-step checklist to calculate and validate a 4 leg parlay

1) Convert each American price to a decimal using the positive and negative formulas. 2) Multiply the four decimals to get the combined decimal. 3) Multiply the combined decimal by your stake for total return. 4) Subtract the stake to find net profit. 5) Check implied probabilities if you want an estimated hit rate, and adjust for vig or correlation before trusting that estimate Investopedia moneyline odds guide. For details see how our evaluations work here.

Where to find calculators and further reading

Use reputable parlay calculators that separate total return and net profit and that accept American odds input. The calculators and tutorials published by recognized education sites reproduce these steps and are useful verification tools when you are learning the math or checking a manual computation TheLines parlay calculator. You can also try Covers' parlay calculator here, and see our blog for related posts.

How do I convert American odds to decimal for a parlay?

Use 1 + A/100 for positive odds and 1 + 100/|A| for negative odds, then multiply the decimals for the parlay.

Does a parlay calculator show total return or profit?

Most calculators show total return including the stake; subtract the stake to find net profit.

Can I estimate a parlay's chance to win by multiplying leg probabilities?

Yes as a rough approximation, but adjust for bookmaker margin and any correlation between legs.

Understanding the multiplication at the heart of parlay payouts makes it easier to compare opportunities and avoid common mistakes. Use the step-by-step checklist when you compute a ticket and keep stake sizing conservative to manage volatility. The same conversion and multiplication math powers calculators and operator systems, so mastering it helps you verify outputs and make clearer decisions about when a 4 leg parlay fits your goals.