Just like with calculating your potential winnings, there are two formulas for calculating implied probability.
The formulas must be used for positive and negative American odds, and they will allow you to see what the chance of a specific outcome happening is. Let’s use or Lakers vs. Suns example again.
Los Angeles Lakers (-300)
Phoenix Suns (+250)
Probability for Negative American Odds
Negative American odds / (negative American odds + 100) * 100 = implied probability
Based on this formula, what you need to do if betting on the Los Angeles Lakers is 300/ (300+100) *100 = 300/400*100 or 75.00%.
Probability for Positive American Odds
100 / (positive American odds + 100) * 100 = implied probability
If you are betting on the Phoenix Suns, then you adjust the numbers as follows: 100/ (250+100) *100 = 100/350 *100 = 28.57%.
The formulas must be used for positive and negative American odds, and they will allow you to see what the chance of a specific outcome happening is. Let’s use or Lakers vs. Suns example again.
Los Angeles Lakers (-300)
Phoenix Suns (+250)
Probability for Negative American Odds
Negative American odds / (negative American odds + 100) * 100 = implied probability
Based on this formula, what you need to do if betting on the Los Angeles Lakers is 300/ (300+100) *100 = 300/400*100 or 75.00%.
Probability for Positive American Odds
100 / (positive American odds + 100) * 100 = implied probability
If you are betting on the Phoenix Suns, then you adjust the numbers as follows: 100/ (250+100) *100 = 100/350 *100 = 28.57%.