# Decimal odds explained: from price to payout in three steps

> How to read decimal betting odds: multiply by the stake for the return, subtract the stake for profit, divide 1 by the odds for implied probability.

Source: https://bookiechecklist.com/how-to-read-decimal-odds/
Updated: 2026-11-13

A decimal price multiplied by your stake gives the return, with your stake already inside it, and the profit is that return minus the stake. Dividing 1 by the price gives the implied probability. This page walks through three assumed examples, one for each step, and links to the calculator for your own numbers.

## Step 1: return = stake times odds

Take the stake and multiply it by the decimal odds. The result is the total paid back if the bet wins, including your stake.

A stake of A$20.00 at 3.40 returns A$68.00.

**Bottom line:** the return already contains your stake.

## Step 2: profit = return minus stake

Subtract the stake to see what you gain. A$68.00 less A$20.00 is A$48.00.

A loss costs the full stake, whatever the odds. Odds of 1.60 or 7.00 change the return, not the loss.

**Bottom line:** profit excludes your stake; a loss is the whole stake.

## Step 3: implied probability = 1 divided by odds

Divide 1 by the odds: 1 / 3.40 is 0.294, or 29.4%. It is the chance the price implies, before any margin.

Add up the implied probabilities of all outcomes in a market and you get more than 100%. The extra is the margin. In a two-way market priced at 1.90 on each side, 1/1.90 twice is 1.053, a margin of 5.3%.

**Bottom line:** a price implies a probability; the surplus over 100% is margin.

## Three examples

**Three assumed examples. Source: arithmetic · checked 2026-11-13**

| Stake | Decimal odds | Return | Profit | Implied probability |
|---|---|---|---|---|
| A$20.00 | 3.40 | A$68.00 | A$48.00 | 29.4% |
| A$50.00 | 1.60 | A$80.00 | A$30.00 | 62.5% |
| A$12.50 | 7.00 | A$87.50 | A$75.00 | 14.3% |

Illustrative example, not a price.

Which format an operator displays is set on its own pages. Status: Not confirmed on 2026-11-13.

**Bottom line:** the same three steps work for any decimal price.

## Three slips to avoid

- **Return is not profit.** The return includes your stake. Profit is what is left after you subtract it.
- **Implied probability is not the true chance.** It is what the price implies, and it includes the margin.
- **Low odds are not safe.** Odds of 1.20 still lose the whole stake when the bet loses.

The calculator accepts odds of 1.01 or more and shows an error below that.

**Bottom line:** read the price as a return, a profit and an implied chance.

## Go further

Work with your own numbers in the [expected value calculator](https://bookiechecklist.com/ev-calculator/). Read more on [implied probability](https://bookiechecklist.com/implied-probability/) and [bookmaker margin (overround)](https://bookiechecklist.com/bookmaker-margin-overround/).

**Bottom line:** the calculator is educational and not a tip.

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## FAQ

**How do I work out the return on decimal odds?**

Multiply the stake by the odds. A stake of A$20.00 at 3.40 returns A$68.00, which includes the A$20.00 stake.

**What is my profit on a winning bet?**

Return minus stake. In the example, A$68.00 less A$20.00 is A$48.00.

**What is implied probability?**

It is 1 divided by the decimal odds. Odds of 3.40 imply 29.4%, before any margin.

**Why do implied probabilities add up to more than 100%?**

The surplus is the bookmaker's margin. In a two-way market at 1.90 on each side the total is 105.3%, a margin of 5.3%.