Decimal odds show the total return per unit staked, including the returned stake. At 2.50, a successful 1 unit stake returns 2.50 units in total and produces 1.50 units of profit. DraftKings' betting glossary provides one current operator reference for odds terminology.
How to Read Decimal Odds
The number you see is your total return per pound staked. The key word is "total", which means your stake is already included.
- 1.50 means you get back 1.50 pounds for every 1 pound staked (0.50 profit)
- 2.00 means you get back 2.00 pounds for every 1 pound staked (1.00 profit)
- 3.50 means you get back 3.50 pounds for every 1 pound staked (2.50 profit)
Anything below 2.00 is odds-on, meaning the potential profit is less than the stake. Anything above 2.00 returns more profit than the amount risked.
Calculating Returns
The formula is straightforward:
Total Return = Stake x Decimal Odds
Profit = Total Return - Stake
For example, at illustrative odds of 1.75 with a 20 pound stake:
- Total return: 20 x 1.75 = 35 pounds
- Profit: 35 - 20 = 15 pounds
For an accumulator, multiply all the decimal odds together:
- Leg 1: Selection A at 1.40
- Leg 2: Selection B at 1.55
- Leg 3: Selection C at 1.80
Combined odds: 1.40 x 1.55 x 1.80 = 3.91
A 10 pound stake returns 39.06 pounds if all three selections win.
Converting Decimal Odds to Raw Probability
Decimal odds can be converted to a raw break-even probability with:
Implied Probability = 1 / Decimal Odds x 100
For example:
- Odds of 2.00 imply a 50% chance (1 / 2.00 x 100)
- Odds of 1.50 imply a 66.7% chance (1 / 1.50 x 100)
- Odds of 4.00 imply a 25% chance (1 / 4.00 x 100)
This is the probability needed to break even on that payoff before fees. In a multi-outcome sportsbook market, raw implied probabilities can sum to more than 100% because of overround; the number is not automatically a no-margin probability estimate.
Past performance does not guarantee future results, and converting odds to probability is an analytical exercise, not a guarantee of outcomes.
Decimal vs Fractional Odds
Fractional and decimal odds can describe the same payoff. Converting between them is arithmetic:
| Decimal | Fractional | Meaning |
|---|---|---|
| 1.50 | 1/2 | Return 1.50 per 1 staked |
| 2.00 | Evens (1/1) | Return 2.00 per 1 staked |
| 2.50 | 6/4 | Return 2.50 per 1 staked |
| 3.00 | 2/1 | Return 3.00 per 1 staked |
| 4.00 | 3/1 | Return 4.00 per 1 staked |
To convert fractional to decimal, divide the first number by the second and add 1. For 5/2: (5 / 2) + 1 = 3.50.
To convert decimal to fractional, subtract 1 from the decimal figure. 3.50 becomes 2.50, which is 5/2.
Why Decimal Odds Are Useful
Decimal notation puts the total-return multiplier directly in the displayed number. For otherwise identical settlement terms, a higher decimal price gives a higher return per unit staked. It does not establish a higher probability or better value by itself.
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Related resources
Continue with Fractional Odds: What They Mean in Betting for the next part of this topic, or return to Betting Glossary: Every Betting Term Explained in Plain English to compare the other guides in this collection.
Continue learning
- Next guide: Double Bet
- Related guide: Double Chance
- Go deeper: How to Read and Calculate Decimal Odds
Assumptions and limitations
Decimal odds state gross return per unit staked under the accepted terms. The examples exclude deductions, dead heats, commission, taxes, boosts, and partial settlements unless stated. DraftKings' glossary supplies one current terminology example; display rounding can make converted formats differ slightly without changing the underlying price.
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