Mastering betting odds: A guide to reading and calculating winnings

June 2, 2025 Chris Mwakao 22 Views

If you have a burning desire to venture into the world of sports betting, understanding how to read betting odds & calculate winnings is very important so as to place smart bets. Without this, even the sure bets can cause a lot of confusion and lead to loss. At ImaraBet, we cater to the needs of both beginner and experienced bettors, and help you understand the math behind the odds.

To succeed in sports betting, choosing a good betting platform and learning how to read betting odds & calculate winnings are key considerations. Odds tell you about the likelihood of an occurrence and help you calculate how much you can win, based on your predictions. This beginner’s guide to betting odds will help you understand the odds formats, how to convert them, and also how to calculate your possible payouts. Here at ImaraBet, we are dedicated to equipping you with skills to make better decisions.

What are betting odds?

Betting odds are numbers, which are set by betting platforms, to show the possibility of an outcome happening, for example, a team winning a match. Understanding betting odds is important because they also show how much money you can win if your prediction is correct. At ImaraBet, we use odds to balance the bet risks and make sure we make a profit, no matter what the outcome is. If a team has higher odds, their winning chances are low with higher payouts, but if a team has lower odds, their winning chances are high but with smaller payouts.

Major types of betting odds

There are three types of sports betting odds used all around the world. However, depending on the region, the odds are displayed in different formats but they all show the probability of an outcome and how much you’ll win. They include Decimal, Fractional and Moneyline odds.

Decimal odds

These are the most common odds formats used in Kenya, Canada, Europe, and Australia and are very easy to read. Decimal odds explained simply means that for the total amount displayed, you win for every 1 unit you bet on. To calculate your total payout, you multiply the stake by the odds. For example, if the odds are 1.50 and you bet using Ksh 1000, the total payout will be 1000 × 1.50 = Ksh 1500, meaning you make a profit of Ksh 500.

Fractional odds

These are common in the UK and Ireland. They use fractions like 1/5 to show how much profit you can generate compared to your total stake amount. In this Fractional odds guide, to calculate your profit, you start by multiplying the stake by the fraction numerator, then divide the result by the denominator. Then, to calculate your total payout, you add the profit and the stake amount. for example, if the odds are 5/1, this means that for every Ksh 1 you bet, you win Ksh 5. Using odds of 5/1 and a stake of Ksh 1000, your profit will be 1000 × 5=5000, so your total payout will be 5000+1000= Ksh 6000.

Moneyline odds (American)

These odds are mainly used by bettors in the United States and are in positive or negative form. The positive odds show how much you can make from, for example, a Ksh 1000 stake. Negative odds, on the other hand, show how much you need to bet to win that Ksh 1000. In this Moneyline odds tutorial, to calculate your profit for positive odds, you multiply the stake by the odds and then divide the result by 100. For negative odds, you multiply the stake by 100, then divide the result by the odds. If the odds are +200 and you stake Ksh 1000, you win Ksh 2000 profit, so your total payout will be Ksh 3000 (2000 + 1000). If the odds are -150 and you stake Ksh 1500 to win Ksh 1000 profit, your total payout will be Ksh 2500 (1500+1000).

How to convert between odds formats

If you want to compare odds from different sportsbooks that use different formats, understanding how to convert odds formats can help you make wise choices and get better value odds.

Decimal to Fractional odds: the formula is Fractional = Decimal – 1, meaning if the odds are 2.50, you subtract 1 to get 1.50. The 1.50 is the same as 3/2.

Fractional to Decimal odds: the formula is Decimal = (Numerator ÷ Denominator) + 1, meaning if the odds are 5/2, you divide them together to get 2.5 then add 1, to get a result of 3.5.
Decimal to Moneyline odds: the formula is Moneyline = (Decimal – 1) × 100. If the odds are greater than 2.00, it means it’s an underdog. For example, given odds of 3.00, you subtract by 1 then multiply by 100 to get +200. If the odds are less than 2.00, that means it’s a favorite. The formula is Moneyline = –100 ÷ (Decimal – 1) which means that odds of 1.50, you subtract 1 then divide the result by -100 to get -200.

Moneyline to Decimal odds: the formula for positive odds is Decimal = (Moneyline ÷ 100) + 1, for example, (+150÷100) to get 2.50. The negative odds formula is Decimal = (100 ÷ –Moneyline) + 1, for instance, -200 odds become (100÷200) +1 to get 1.50.

How to convert between betting odds formats

Understanding implied probability

Implied probability in betting refers to the chance of an outcome happening, as shown by the betting odds. Understanding implied probability helps you see the risk of every bet and compare your predictions with the betting platform’s. You can also spot value bets when you think the winning chances are higher compared to what a sportsbook’s odds suggest.

To calculate the implied probability of Decimal odds, the formula is: Probability (%) = 1/Decimal Odds × 100. For example, with Decimal odds of 2.00, 1/2.00 × 100 is 50%.

To calculate the implied probability of Fractional odds, the formula is Probability (%) = Denominator/ (Numerator + Denominator) ×100. For example, with odds of 4/1, 1/ (4+1) × 100 is 20%.

To calculate the implied probability of Moneyline odds, the formula for positive odds is Probability (%) = 100/ (Odds+100) ×100. For example, 100/ (150+100)×100=40%. For negative odds, Probability (%) =Odds (absolute value)/ odds + 100 × 100. For example, 200/ (200+100) ×100=66.67%

How to calculate winnings for each odds format

To be a smart bettor, you need to be fluent in calculating betting payouts. Here is a step-by-step process;

For Decimal odds, the formula is:

Total Payout=Stake × Decimal Odds
Profit=Total Payout−Stake

For example, if the odds = 2.50, Stake = Ksh 1,000, the total payout = 1,000 × 2.50 = Ksh 2,500 and the profit = 2,500 – 1,000 = Ksh 1,500

For Fractional odds, the formula is:

Profit=Stake×(Denominator/Numerator)
Total Payout=Profit+Stake

For example, if the odds= 3/1, Stake = Ksh 1,000, the profit = 1,000 × (3 ÷ 1) = Ksh 3,000 and the total payout = 3,000 + 1,000 = Ksh 4,000

For positive Moneyline odds, the formula is:

Profit=(Stake×Odds)/ 100
Total Payout=Profit+Stake

For example, if the odds= +150, Stake = Ksh 1,000, the profit = (1,000 × 150) ÷ 100 = Ksh 1,500 and the total payout = 1,500 + 1,000 = Ksh 2,500

For negative Moneyline odds, the formula is:

Profit=(Stake×100)/ odds.

for example, if the odds = –200, stake = Ksh 2,000, the profit = (2,000 × 100) ÷ 200 = Ksh 1,000 and the total payout = 2,000 + 1,000 = Ksh 3,000

What is a value bet in sports betting?

A value bet refers to placing a bet when the odds by the sportsbook are higher than the probability of the outcome, according to your opinion. This simply means that you get more profit than you should. These bets are not just about winning; they are about looking for situations where the bookmaker has underestimated the chances of an occurrence. If you find and bet on these value odds, you increase your chances of making big profits over time.

Here are some value betting strategies you can use on ImaraBet:

Do research and keep up with stats to predict the correct chances of an outcome. For example, according to you, a specific team has 50% chance of winning.
Look at our odds.
Convert the odds to implied probability by using the Decimal odds formula.
Compare the probabilities, both from our betting site and yours.
If your estimate is higher than what you find from the betting site, then that is a value bet.

Another fast formula to calculate a value bet is to multiply Decimal odds by your estimated probability, then subtract 1 from the result. If the result is greater than 0, that is definitely a value bet. For instance, 2.20 × 0.60 (60%)-1, is 0.32.

Tools & calculators for betting odds

The table below shows online betting tools such as the betting odds calculator, which help you to save time and avoid making mistakes:

Tool	Function
Betting Odds Calculator	Calculates your potential payouts and converts between American, Decimal, and Fractional odds. It is good for measuring value of any bet.
Arbitrage Betting Calculator	Finds opportunities by showing how much to stake on each outcome when odds vary in betting platforms.
SmartBet Tracker (AI Tool)	Tracks results, analyzes patterns and offers insights to help with your strategy.
Parlay Odds Calculator	Helps you understand the risk and chances of winning by calculating the total potential payout of multi-leg bets by combining the odds.
Kelly Criterion Calculator	Suggests how much to bet depending on your bankroll and even helps to grow your bankroll sustainably over time.
Line Shopping Tool	Compares betting odds from different platforms in real-time so you can find the best value and avoid settling for less favorable lines.

Common mistakes to avoid

Even the most experienced bettors make mistakes, here are some common mistakes to avoid when to help you make informed decisions when betting:

Lack of knowledge in bet formats– most bettors confuse the three formats, which leads to incorrect calculations. You should learn the formats and check the settings of the bookmaker to confirm the type of odds being used. At ImaraBet, we often use Decimal odds.
Implied probability illiteracy– some bettors wager according to their instincts instead of learning what the odds mean in terms of chances. This means that they might be betting on odds with low implied probability, increasing the risk significantly. Thus, it is advisable to convert the odds to implied probability.
Emotional based betting– this happens when punters bet on favorites because they are excited or chasing a loss. This leads to poor results; hence you should place your bets based on facts and statistics rather than loyalty, and always stick to a strategy.
Assuming the bookmaker margins– most bettors forget that the odds also reflect the bookmaker’s profit, also called the overround. At ImaraBet, we add a margin to make sure we make a profit, meaning odds are lower than the probabilities. It is advisable to value betting strategies to overcome the margin.

Advanced betting tips

If you’re a confident bettor and want to take your skills to the next level, here are some strategies to help you increase your wins and manage risk:

Bankroll management strategies

This means controlling how much you spend in betting, so you don’t lose too much money. It also helps you reduce stress and be in control. The sports betting basics include:

Bet with a small percentage of your total bankroll.
Avoid chasing losses or trying to win money back.
Set a budget and don’t go beyond it.
Limit your time in betting by including other fun activities.

Understanding the favorite-longshot bias

This is an occurrence where bettors overvalue the underdogs and undervalue the favorites, because favorites have lower odds but higher winning chances, while the long longshots have higher odds but lower winning chances. It is important to understand this bias because many bettors lose a lot of money due to backing unlikely outcomes. Always be careful when betting on underdogs and avoid focusing on the higher payouts; instead, look for value in favorites when odds offer good profit.

Utilizing the Kelly criterion for bet sizing

The Kelly criterion is a formula that helps you decide how much of your bankroll to bet on, depending on the bet value. This formula depends on your accuracy when estimating probabilities. If you overestimate, it can lead to over betting, which induces big losses. The formula is: Kelly %= (bp-q)/b,

where b = Decimal odds – 1, p = your estimated probability of winning (as a Decimal), q = probability of losing = 1 – p. For example,

Odds = 2.50, so b=2.5−1=1.5
Your probability = 60% (or 0.6)
q=1−0.6=0.4

This means you should bet 33.33% of your bankroll on this wager.

Conclusion

The foundation of strategic betting begins with understanding how to read betting odds & calculate winnings. Having knowledge of how Decimal, Fractional, and Moneyline odds work will help you reduce risk and evolve your skills. At ImaraBet, we emphasize that betting is not just about luck, but also about knowing how these odds work, managing your money wisely, and staying in control. With this guide, you are now capable of betting wisely and increasing your profits.

FAQs on how to read betting odds & calculate winnings

What is the easiest odds format for beginners to understand? Decimal odds are the simplest to read and understand, as they directly represent the total payout, including the stake.

How do I calculate implied probability from Decimal odds? The formula for calculating the implied probability of Decimal odds = (1/Decimal Odds) x 100.

What is a value bet in sports betting? Value betting involves placing bets that you think are more likely to win than what the bookmaker’s odds suggest.

Can I convert odds formats manually? Yes, with the appropriate formulas, you can convert between Decimal, Fractional, and Moneyline odds.