If you’re new to sports betting, odds can feel confusing at first. There are several formats decimal, fractional, and American but in the United States, American odds are the most commonly used. Understanding how they work is essential for calculating potential payouts, evaluating risk, and making informed bets.
This article breaks down American odds in simple terms, explains how to read them, and shows how to calculate payouts, using clear examples even beginners can grasp.
What Are American Odds?
American odds are the most common odds format used in the United States for sports betting. They are also known as moneyline odds because they are the default way sportsbooks quote payouts on straight-up outcomes like which team will win a game. These odds are written either with a positive (+) or a negative (–) sign in front of a number, and that sign tells you how much you win or must risk to make a $100 profit
Unlike decimal or fractional odds, American odds are centered around a standard $100 wager, which makes them intuitive for U.S. bettors used to thinking in dollar amounts. American odds show both the probability implied by the sportsbook and the money you’re risking or could win, all in one simple notation.
Positive American odds are used to show the payout for an underdog a team or outcome that is less likely to happen. The number tells you how much profit you would receive if you bet $100.
Example:
- Odds: +200
- This means if you bet $100, you would win $200 in profit.
- Your total payout (if the bet wins) would be $300 your original stake plus profit.
This makes it easy to visualize because the odds show the reward directly for a standard $100 bet.
Understanding Positive and Negative Odds
Positive Odds (+)
Positive odds are typically given to underdogs. They show how much profit you would earn on a $100 bet.
Example:
- Team B: +150
- If you bet $100, you would win $150 in profit if Team B wins.
- Total payout = $100 (stake) + $150 (profit) = $250
Everyday analogy:
It’s like betting on a new, untested restaurant becoming popular riskier, but the payoff is higher.
Negative Odds (-)
Negative odds are given to favorites. They show how much you need to bet to earn $100 in profit.
Example:
- Team A: -200
- You must bet $200 to win $100 profit if Team A wins.
- Total payout = $200 (stake) + $100 (profit) = $300
Everyday analogy:
It’s like betting on a busy, well-known restaurant to be full on a Friday night you’re likely to win, but the reward is smaller.
How to Calculate Payouts With American Odds
Understanding how to calculate payouts is one of the most important skills in sports betting. American odds make this easier once you know whether you’re dealing with positive (+) or negative (–) numbers. The calculation method changes slightly depending on which type of odds you’re using.
Below is a complete breakdown with examples.
Calculating Payouts With Positive American Odds (+)
Positive odds show how much profit you win on a $100 bet. These odds are usually attached to underdogs.
Formula for Positive Odds
Profit = Bet Amount × 100 / Odds
Total Payout = Bet Amount + Profit
Example 1: Standard $100 Bet
- Odds: +150
- Bet amount: $100
Calculation:
- Profit = $100 × (150 ÷ 100) = $150
- Total payout = $100 + $150 = $250
If your bet wins, you receive $250 in total.
Example 2: Smaller Bet Size
- Odds: +200
- Bet amount: $50
Calculation:
- Profit = $50 × (200 ÷ 100) = $100
- Total payout = $50 + $100 = $150
This shows that payouts scale proportionally with your bet size.
Calculating Payouts With Negative American Odds (–)
Negative odds show how much you need to risk to win $100 in profit. These odds are usually assigned to favorites.
Formula for Negative Odds
Profit=Bet Amount × 100 / |Odds|
Total Payout=Bet Amount+Profit
Example 1: Betting the Favorite
- Odds: -200
- Bet amount: $200
Calculation:
- Profit = $200 × (100 ÷ 200) = $100
- Total payout = $200 + $100 = $300
You risk more money, but the outcome is considered more likely.
Example 2: Smaller Stake on a Favorite
- Odds: -150
- Bet amount: $60
Calculation:
- Profit = $60 × (100 ÷ 150) = $40
- Total payout = $60 + $40 = $100
This demonstrates how favorites provide smaller returns relative to risk.
Quick Comparison: Positive vs Negative Odds
- +150 → Bet $100 to win $150 profit
- -150 → Bet $150 to win $100 profit
The numbers clearly show the risk-reward tradeoff between underdogs and favorites.
Simple Rule to Remember
- Positive odds (+) tell you how much you win on $100
- Negative odds (–) tell you how much you must risk to win $100
If you remember that rule, payout calculations become much easier
Why American Odds Are Popular
American odds are popular because:
- They are intuitive for US bettors accustomed to moneyline betting
- Positive/negative numbers quickly show risk vs reward
- They make it easy to compare favorites and underdogs
- They pair seamlessly with point spreads and moneyline bets.
American Odds Across Different Sports
American odds are used in nearly every sport in the US:
- NFL, NBA, MLB – Displayed alongside point spreads and totals
- Soccer & Hockey – Often paired with moneyline bets
- Live Betting – American odds fluctuate in real-time, showing how probability changes as the game progresses
For accurate historical odds and game results, trusted sources like ESPN’s betting stats database can be referenced.
How AI Can Improve American Odds Betting
AI-powered tools, like TheOver.ai, can help bettors:
- Convert American odds into implied probabilities
- Compare odds across multiple sportsbooks
- Identify mispriced favorites or underdogs
- Track market movements and line changes
Using AI analysis allows for smarter, data-driven betting decisions, rather than relying on gut feeling alone.
Are American Odds Beginner-Friendly?
Yes. American odds are often the first odds format beginners learn because:
- They are widely used in US sportsbooks
- The positive/negative system clearly shows risk and reward
- Once understood, they apply to all types of bets, including moneylines, spreads, and totals
Mastering American odds builds a foundation for understanding all other odds formats.
Final Thoughts: Why American Odds Matter
American odds are more than just numbers they represent the core relationship between probability and payout. Understanding how they work is essential for:
- Calculating potential profit
- Comparing risk between favorites and underdogs
- Making informed betting decisions
With AI-powered tools like TheOver.ai, bettors can analyze odds in real time, identify value bets, and approach sports betting with confidence and strategy.