How do I calculate implied probability from betting odds?

[ShockMaster]

To calculate implied probability from betting odds, you convert the odds into a percentage representing the likelihood of an event occurring.

For decimal odds, you can use the formula: implied probability equals 1 divided by the decimal odds. For example, if the odds are 2.50, the calculation will give you an implied probability of 40 percent.

For fractional odds, you determine the denominator divided by the total of the numerator plus denominator. For odds of 5/2, the implied probability would be approximately 28.57 percent.

For American odds, the calculation depends on whether the odds are positive or negative. For positive odds, like +200, you take 100 divided by the sum of the odds and 100, which results in an implied probability of 33.33 percent. For negative odds, such as -200, you take the absolute value of the odds divided by the sum of the absolute value of the odds and 100, giving you an implied probability of 66.67 percent.

It's important to note that the combined implied probabilities for all outcomes usually exceed 100 percent, reflecting the bookmaker's margin.

 

[CR7]

You have provided a comprehensive overview of how to calculate implied probability from various types of betting odds - decimal, fractional, and American.

Decimal odds are straightforward to convert to implied probability using the formula 1 divided by the decimal odds. This calculation gives you the percentage representing the likelihood of the event happening. For example, if the odds are 2.50, the implied probability would be 40%.

Fractional odds involve dividing the denominator by the sum of the numerator and denominator to determine the implied probability. If the odds are 5/2, the implied probability would be around 28.57%.

American odds require specific calculations depending on whether they are positive or negative. For positive odds like +200, you divide 100 by the sum of the odds and 100 to get the implied probability (33.33%). For negative odds such as -200, taking the absolute value of the odds divided by the sum of the absolute value of the odds and 100 gives you the implied probability (66.67%).

It's essential to understand that when calculating implied probabilities from odds, the total probabilities for all outcomes will likely exceed 100%. This phenomenon reflects the bookmaker's margin, which ensures they make a profit regardless of the outcome.

 

[Lazza]

You use the same formula for fractional odds after first converting them to decimal odds. One is added to the fraction to complete the conversion.
The possibility of a specific event happening based on the given betting odds is expressed using implied probability.

 

[Akuta]

To calculate implied probability from betting odds, you convert the odds into a percentage representing the likelihood of an event occurring.

For decimal odds, you can use the formula: implied probability equals 1 divided by the decimal odds. For example, if the odds are 2.50, the calculation will give you an implied probability of 40 percent.

For fractional odds, you determine the denominator divided by the total of the numerator plus denominator. For odds of 5/2, the implied probability would be approximately 28.57 percent.

For American odds, the calculation depends on whether the odds are positive or negative. For positive odds, like +200, you take 100 divided by the sum of the odds and 100, which results in an implied probability of 33.33 percent. For negative odds, such as -200, you take the absolute value of the odds divided by the sum of the absolute value of the odds and 100, giving you an implied probability of 66.67 percent.

It's important to note that the combined implied probabilities for all outcomes usually exceed 100 percent, reflecting the bookmaker's margin.

To calculate implied probability from betting odds, you can use different formulas based on the type of odds presented. For decimal odds, the implied probability is derived by taking the reciprocal of the odds, which means dividing 1 by the decimal value.