If you’re exploring sports betting, odds are the foundation of understanding your potential winnings and risks. While American odds are popular in the U.S., European odds, also called decimal odds, are widely used in Europe, Australia, and many online sportsbooks worldwide.
Decimal odds are often considered the most straightforward odds format because they show your total payout (stake + profit) per unit bet in a single number. This makes them extremely intuitive and beginner-friendly.
What Are European (Decimal) Odds?
Decimal odds express how much a winning bet will pay out for every 1 unit wagered, including your original stake. Unlike American odds, which require separate calculations for favorites and underdogs, decimal odds use a single formula that works for all outcomes.
Formula:
Total Payout = Stake × Decimal Odds
Example:
- Decimal odds: 2.50
- Stake: $100
- Total payout = $100 × 2.50 = $250
- Profit = Total payout – Stake = $250 – $100 = $150
This simplicity makes decimal odds ideal for beginners, yet they are powerful for advanced bettors because the payout is always immediately visible. Learn More.
How to Read Decimal Odds
Decimal odds are straightforward:
- Greater than 2.00 → Indicates underdog (you win more than your stake)
- Equal to 2.00 → Indicates a 50/50 chance (total payout is double the stake)
- Less than 2.00 → Indicates favorite (you win less than double your stake)
Example Table:
| Decimal Odds | Stake $100 | Total Payout | Profit | Interpretation |
|---|---|---|---|---|
| 1.50 | 100 | 150 | 50 | Favorite |
| 2.00 | 100 | 200 | 100 | Even chance |
| 3.00 | 100 | 300 | 200 | Underdog |
| 5.50 | 100 | 550 | 450 | Big underdog |
This table clearly shows how decimal odds translate directly into profit and total payout.
Converting Decimal Odds to Implied Probability
One of the most powerful uses of decimal odds is calculating implied probability, which is the sportsbook’s estimate of the likelihood of an outcome occurring.
Formula:
Implied Probability (%) = 1 / Decimal Odds × 100
Example:
- Decimal odds: 2.50
- Implied probability = (1 ÷ 2.50) × 100 = 40%
This means the sportsbook estimates a 40% chance of this outcome occurring. Bettors can compare this to their own analysis to find value bets.
Example 2:
- Decimal odds: 1.80
- Implied probability = (1 ÷ 1.80) × 100 ≈ 55.56%
Decimal odds make it simple to spot where the bookmaker’s probability differs from your analysis.
Why Decimal Odds Are Popular
- Simplicity: One number tells you everything payout for every unit bet.
- Universal Use: Common in Europe, Australia, Asia, and most online sportsbooks.
- Easy for Multiples: Ideal for parlay/multiple bets just multiply the decimal odds together to calculate total payout.
- Quick Calculation: Total payout is calculated with a simple multiplication formula.
- Visual Clarity: Beginners can immediately see how much they’ll get back without complicated conversions.
How Decimal Odds Work With Different Bet Types
1. Single Bets
- You bet on one outcome.
- Decimal odds multiply your stake to show total payout.
Example:
- Bet $50 on odds 2.20
- Total payout = 50 × 2.20 = $110
- Profit = $60
2. Multiple Bets (Parlays)
- Decimal odds make calculating parlays easy: multiply the decimal odds of each leg.
Example:
- Match 1: 1.80, Match 2: 2.00, Match 3: 1.50
- Combined odds = 1.80 × 2.00 × 1.50 = 5.40
- Bet $10 → Total payout = $10 × 5.40 = $54
- Profit = $44
This simplicity is one reason decimal odds are favored in European betting markets.
3. Live/In-Play Betting
Decimal odds adjust dynamically in live betting, allowing bettors to quickly see real-time potential payouts as the game unfolds.
Comparing Decimal Odds to Other Formats
| Odds Type | Example | How to Read |
|---|---|---|
| Decimal (EU) | 2.50 | Total payout per $1 bet (stake included) |
| American (US) | +150 / -200 | Profit on $100 bet or amount needed to win $100 |
| Fractional (UK) | 3/2 | Profit relative to stake (3 units won per 2 staked) |
Decimal odds are often preferred because they are universal and simple, especially for calculating multiple bets and comparing potential profits at a glance.
Tips for Using Decimal Odds Effectively
- Always calculate total payout and profit before placing a bet.
- Use implied probability to identify value bets where your assessment differs from the bookmaker.
- When betting on parlays or multiple outcomes, multiply decimal odds to calculate potential winnings.
- Compare decimal odds across sportsbooks small differences can significantly affect long-term profitability.
- Decimal odds work seamlessly with AI betting tools like TheOver.ai for probability and payout analysis.
Final Thoughts
European (decimal) odds are simple, versatile, and transparent. They show your total payout per unit wagered, work with all types of bets, and allow easy calculation of implied probability and potential profit.
For any sportsbook user, mastering decimal odds is essential for:
- Calculating payouts quickly
- Understanding risk vs reward
- Comparing bookmakers for value
- Making informed and strategic bets
With tools like TheOver.ai, bettors can analyze decimal odds, calculate probability, and identify high-value opportunities in real-time.