# How to Calculate Sports Betting

## Sports betting odds. How to calculate the coefficient?

Sports betting odds are a reflection of the probability of an outcome according to the bookmaker’s analysts. Bets are made on the coefficient. The winnings are determined by multiplying the transaction amount and quotes.

Let’s learn how to calculate odds, convert quotes to odds, and find profitable markets.

The coefficient is just a representation of the probability. Knowing how to determine the probability and convert it into quotes is the first step on the way to your own assessment of the chances of an event.

Understanding the essence of quotes, and not just a term, is the main difficulty for most beginner bettors. Having dealt with this problem, you will be able to compare bookmaker values. You need to learn how to evaluate the chances of an outcome, and not consider the set coefficient as the main element when making a bet.

The basis of bets is the definition of probabilities. Bookmakers use quotes to acquaint users with the assessment of odds and provide their services in a more convenient form. The existence of different odds formats (American, decimal, fractional, Hong Kong, Malaysian, etc.) only confirms that they are a means to an end, that is, betting.

## How is the probability calculated?

Every day we face risks in everyday life: “what are my chances to catch a minibus?”, “is there a high probability of rain?”. But when it comes to estimating probability, few understand how it works.

The probability is displayed by school from 0 to 1, where 0 is the complete absence of chances for an event, it will never happen, and 1 – the event will definitely happen. Other probabilities are in the range between these points.

A coin toss is the best example of how to easily explain the calculation of probability. A tossed coin will in any case fall on one of the sides: heads or tails. Together, these options allow us to state that the probability is equal to one.

In reality, a bettor wants to know the odds of a certain outcome, such as getting tails. For this, a simple formula is used:

## Acceptable outcomes / all possible options

In our example, this is tails. We divide the available value into two outcomes (heads or tails). It turns out the probability is 0.5. Most people are used to percentage odds, so multiply the probability (0.5) by 100 = 50%.

## How to convert probability to coefficient?

Legal bookmakers use the decimal format of quotes. To determine the ratio, use the following formula:

**unit / probability of outcome**

Divide 1 (absolute probability) by 0.5 (probability of getting tails). The result is a factor of 2.0. If you perform the reverse actions, then the value of the quotes is converted into a probability. It is more convenient to use 100% instead of one:

- 100% / coefficient = probability
- We divide 100 percent by a factor of 2.0 and get the chances of an outcome – 50%.

If you make calculations for the market, for example, total over and under 2.5 goals in football, then the sum of probabilities will exceed 100%, since bookmakers include margin in the odds.

It turns out that quotes do not reflect the objective probabilities of outcomes. The same odds for tails from 2.0 would at best turn into 1.95. The article on how a bookmaker works has a clear example of creating quotes.

## How to calculate the possible winnings on a bet?

The ability to calculate the odds and evaluate the odds is a new opportunity for players, but you need to know how much you can win on a bet. For this, a simple formula is used:

- transaction amount * coefficient
- If delivered 100 c.u. with a coefficient of 2.0 for tails, then the winnings will be 200 c.u. This amount includes the size of the transaction and net profit.

Thanks to the ability to determine the probability and understand how the coefficient is created, you can calculate the odds for the outcome yourself, thus creating your own quotes. You can compare your own calculations with the values of offices. In case of a significant discrepancy, you can take a winning position and earn. This is the goal of any bettor.