This article walks through how to calculate winnings on a bet in the main odds formats used today. You will learn the exact formulas for decimal, fractional and American odds, how to convert between them, and how to compute parlay payouts.

Decimal odds show total return directly and are simple to use for payout math.

For parlays, convert every leg to decimal then multiply decimals before applying the stake.

Operator rounding, caps and settlement rules can change the realized payout from the theoretical calculation.

How to calculate winnings on a bet: definitions and odds formats

When you need to calculate winnings on a bet, the first step is to know which odds format you are looking at, and whether you want net profit or total payout. Decimal odds show the total return per unit staked, fractional odds show profit relative to the stake, and American odds use positive or negative moneyline numbers to express how a stake converts to profit. For a clear reference on these formats and the canonical formulas, see the Action Network odds guide Action Network odds guide.

Decimal odds use a simple formula: total return = stake × D, and net profit = stake × (D - 1). This notation is common online and across many international markets because it directly shows the total amount returned for each unit staked. The Pinnacle odds conversion guide provides the same decimal rule and conversion context Pinnacle odds conversion guide.

Fractional odds a/b indicate profit = stake × (a/b) and total payout = stake + profit. This traditional U.K. style expresses how much you win in relation to your stake and can be converted easily to decimal to compare offers. Betfair’s explanation of fractional odds lays out this relationship clearly Betfair fractional odds explanation.

American, or moneyline odds, have two forms. For a positive moneyline +X the profit equals stake × (X/100). For a negative moneyline -Y the profit equals stake × (100/Y). In every case payout equals stake plus profit. Investopedia’s moneyline primer shows these two cases and example calculations Investopedia moneyline primer.

All three formats are mathematically equivalent representations of the same underlying value, so converting between them is purely a notation change and does not alter expected return. Use conversions to compare offers across sites and markets, as explained in conversion guides that cover equivalence across notations Pinnacle odds conversion guide.

Step-by-step: calculate winnings on a bet for a single selection

Step 1, identify the odds format. If the price looks like 2.50 it is decimal, 3/2 is fractional, and +150 or -120 is American. Once you know the format, apply the matching formula so you do not mix methods. The Action Network guide highlights quick identification rules for each format Action Network odds guide.

Step 2, apply the correct formula and compute net profit and total payout. For decimal D, compute total = stake × D and profit = stake × (D - 1). For example, a $20 stake at D = 2.5 yields total = $20 × 2.5 = $50 and profit = $20 × 1.5 = $30. The decimal formula and this simple arithmetic are summarized in the Pinnacle resource Pinnacle odds conversion guide.

Close up paper showing stake 20 decimal conversion and multiplication for a three leg parlay example to calculate winnings on a bet final return 504 minimalist Funded Plays style

Worked example for fractional odds: if the price is 3/2 and you stake $20, profit = $20 × (3/2) = $30 and total payout = $20 + $30 = $50. Fractional notation shows the ratio directly and converts to decimal by adding one to the fraction, which Betfair explains in its odds primer Betfair fractional odds explanation.

Worked examples for American odds include both signs. For +150 and a $20 stake, profit = $20 × (150/100) = $30 and payout = $50. For -200 and the same $20 stake, profit = $20 × (100/200) = $10 and payout = $30. These two cases are the standard moneyline calculations described by Investopedia Investopedia moneyline primer.

Always state both net profit and total payout to avoid confusion. The displayed number on a platform might show one or the other, so confirm which value is shown before you compare it to your manual calculation. The American Gaming Association’s beginner notes emphasize checking the format and what a platform displays when learning payouts AGA sports betting basics.

Use the formulas or a calculator to confirm payout before you commit

Use the example formulas here or a quick calculator to check a real bet before you confirm the stake and payout.

View FundedPlays Challenges

How to calculate parlay payouts and multiples

To calculate a parlay payout, convert each leg to decimal odds first, then multiply those decimals together, and finally multiply the result by your stake to get the theoretical total payout. This conversion-then-multiply approach is the standard industry method for parlays Pinnacle parlay payout guide. You can use an odds converter to speed conversions and compare formats, and see our blog for related articles.

Step 1, convert legs to decimal. If a leg is fractional, convert by adding 1 to the fraction. If a leg is American, convert using the standard conversion formula into decimal. The conversion step ensures all legs are on the same scale before multiplication, as shown in conversion resources Pinnacle odds conversion guide.

Step 2, multiply the decimal odds together. For example, if the decimals are 1.5, 2.0 and 1.8 then the combined decimal = 1.5 × 2.0 × 1.8 = 5.4. Step 3, multiply by stake. A $10 stake at combined decimal 5.4 yields theoretical payout = $10 × 5.4 = $54. The parlay multiplication method and example are consistent with industry explanations of parlay mechanics Pinnacle parlay payout guide.

Remember that most operators round their internal decimal products or displayed payout according to house rules. That rounding can cause small cent-level differences between the theoretical payout and what you see when a parlay settles. Pinnacle notes rounding and operator policies as common real-world adjustments to theoretical math Pinnacle parlay payout guide.

If a leg is voided or settled as a push, the common practice is to remove that leg from the multiplication and treat the parlay as if it had one fewer leg, which reduces the combined decimal accordingly. Operator rules can vary, so check the site settlement rules for voided-leg handling before relying on a single calculation. The handling of voids and pushes is a common operator policy point described in educational resources Pinnacle parlay payout guide.

Convert odds and implied probability: why format does not change value

Converting odds to implied probability helps you compare whether a price is fair across formats. Decimal implied probability is 1 / D. That conversion is a basic rule used in odds education material Pinnacle odds conversion guide.

For fractional odds a/b the implied probability is b / (a + b). This formula arises because fractional odds represent profit relative to stake and the conversion shows the underlying implied chance. Betfair covers this fractional-to-probability conversion in its odds primer Betfair fractional odds explanation.

Funded Plays Challenges is a funded sports prediction platform where users complete structured evaluation challenges using virtual funded accounts to demonstrate consistent forecasting and disciplined decision-making.

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American odds convert to implied probability differently by sign: for +X use 100 / (X + 100), and for -Y use Y / (Y + 100). These formulas are standard in moneyline explanations and are useful when you want to compare a moneyline against an implied chance from other markets Investopedia moneyline primer.

Use implied probability when you want to compare value, calculate expected value, or check whether a market price represents a good selection relative to your own probability estimate. Conversion is a comparison tool and does not change the mathematical return for a given stake; it only translates notation into a probability scale that is easier to reason about. Educational conversion guides explain this comparative use of implied probability Pinnacle odds conversion guide. See how evaluations work on Funded Plays.

Operator rules and real-world adjustments that change your realized payout

Even when your math is correct, operator policies can change the payout you actually receive. One common source of difference is rounding. Some sites round intermediate decimal products or the final payout to two decimals or to the nearest cent, which can move the displayed payout a few cents from the theoretical amount. Pinnacle and other resources note that rounding policies are a frequent cause of small differences Pinnacle parlay payout guide.

Stake limits and maximum payout caps are another real-world constraint. If your calculated payout exceeds an operator maximum, you will not receive more than the cap. Promotions that alter stake treatment or provide bonus credit can also change how a payout is settled. The American Gaming Association recommends checking a site’s terms, limits and promotion rules to understand these constraints AGA sports betting basics.

Voided legs and pushes affect parlays and single bets differently depending on settlement rules. A voided parlay leg typically reduces the number of legs and recalculates the product; a push on a single bet often results in stake return only. Because operators differ in how they treat these events, consult the site settlement rules when you need to predict final payout after unusual outcomes. Pinnacle’s parlay guidance notes how voids are usually handled in practice Pinnacle parlay payout guide.

Practical checklist: calculate winnings before you confirm

1) Verify the odds format and convert if needed so you apply the right formula.

2) Confirm the stake and decide whether you want to view net profit or total payout.

How do I calculate my winning bet?

Identify the odds format, apply the matching formula or convert to decimal, compute net profit and total payout, and check operator rules for rounding or caps.

3) Calculate your expected payout manually or with a calculator and compare it to the operator’s displayed payout to spot differences.

4) Check for promotions, max payout caps, stake limits and special settlement rules that could change your realized return.

5) If the operator’s arithmetic differs, review rounding rules and ask support for clarification before you commit a large stake. The AGA recommends checking a site’s terms and limits for clarity on these points AGA sports betting basics.

Common mistakes when you calculate winnings on a bet

Mixing odds formats without converting is a frequent error. Applying a decimal formula to fractional or American odds will give the wrong number; always convert to the format that matches your formula first. Action Network’s odds overview highlights common misidentification mistakes and how to avoid them Action Network odds guide.

Confusing net profit and total payout causes needless disagreement with displayed site numbers. A quick check: if the platform shows the amount you will get back including stake, it is showing total payout; profit excludes your stake. Pinnacle’s conversion material explains the difference between profit and total return clearly Pinnacle odds conversion guide.

Minimal 2D vector comparison of theoretical payout and operator displayed payout side by side with subtle cent differences to illustrate how to calculate winnings on a bet

Mishandling the signs on American odds is another common error. Remember that +X multiplies stake by X/100 for profit, while -Y means profit equals stake times 100/Y. A sleepless sign error can change your expected gain materially, and moneyline primers outline the two-case logic to avoid mistakes Investopedia moneyline primer.

For parlays, forgetting to convert legs to decimal before multiplication leads to wrong totals. Convert every leg first, then multiply decimals, then multiply by stake. This sequence is the standard parlay process and prevents multiplication errors described in parlay guides Pinnacle parlay payout guide.

Worked examples and scenarios

Single decimal example, step 1: stake = $25, decimal D = 2.40. Step 2: total payout = $25 × 2.40 = $60. Step 3: net profit = $25 × (2.40 - 1) = $35. This follows the decimal formula shown in educational odds materials Pinnacle odds conversion guide.

American examples: positive moneyline. Stake $25 at +160. Profit = $25 × (160/100) = $40, payout = $65. Negative moneyline: stake $25 at -150. Profit = $25 × (100/150) = $16.67, payout = $41.67. These two cases use the standard moneyline formulas detailed in moneyline explanations Investopedia moneyline primer.

Three-leg parlay walkthrough: legs shown in mixed formats, convert first. Leg A 3/2 converts to decimal 2.5, Leg B +120 converts to decimal 2.20, Leg C 1.6 is already decimal. Multiply decimals: 2.5 × 2.20 × 1.6 = 8.8. With a $10 stake, theoretical payout = $10 × 8.8 = $88. Remember operator rounding could change the final displayed payout by a few cents, which is a normal difference from theoretical math Pinnacle parlay payout guide.

quick parlay payout estimate using decimal-converted legs

useful for three-leg checks

Short note on rounding caveat: if an operator displays a payout that differs from the computed number, check whether they round intermediate products or final totals and whether any promotional credit or cap applies before assuming an error. A quick odds calculator can help check differences.

Conclusion: quick rules to reliably calculate winnings on a bet

Rule 1, match the formula to the format: decimal uses total = stake × D and profit = stake × (D - 1); fractional uses profit = stake × (a/b) and payout = stake + profit; American uses +X profit = stake × (X/100) and -Y profit = stake × (100/Y). These core formulas are the standard references for odds math Action Network odds guide.

Rule 2, convert to decimal for parlays: convert every leg, multiply decimals, then multiply by stake. That sequence avoids common multiplication mistakes and matches industry parlay methods Pinnacle parlay payout guide.

Rule 3, always check operator terms for rounding, caps and special settlement rules before you place a bet. Even correct math can lead to a slightly different realized payout when operator policies apply. For practical site checks see general operator guidance AGA sports betting basics.

Practice the worked examples here and use a calculator or conversion tool for speed when stakes are large or parlays have many legs (see Funded Plays). Conversion tools reduce manual error and help you compare offers across formats accurately.

How do decimal odds show my return?

Decimal odds show total return per unit staked; total payout = stake × decimal, and net profit = stake × (decimal - 1).

How do I convert American odds to decimal?

For +X use decimal = 1 + X/100; for -Y use decimal = 1 + 100/Y so you can compare and multiply like other formats.

What happens if a parlay leg is voided?

Most operators remove the voided leg and recalculate the parlay with the remaining legs, but check site settlement rules in case of different treatment.

Use the checklist and worked examples to practice the arithmetic until it becomes routine. When in doubt, convert to decimal and use a calculator to confirm results before placing a wager.