This guide explains decimal odds in plain terms, using Australian dollar (A$) examples to show potential returns, profit and implied probability without any tricky maths.
What are decimal odds?
Decimal odds show the total return from a winning bet. The number includes both your stake and your profit. For example, odds of 2.00 mean a winning A$10 bet returns A$20 in total: your A$10 stake plus A$10 profit.
- 1.50: A$1.50 back for every A$1 staked, if the bet wins.
- 2.00: A$2.00 back for every A$1 staked, if the bet wins.
- 3.00: A$3.00 back for every A$1 staked, if the bet wins.
- 5.00: A$5.00 back for every A$1 staked, if the bet wins.
These figures assume a winning bet with no deductions or special settlement rules. If the bet loses, you lose your stake.
How to read decimal odds without maths
The easiest way to work out a return is to multiply your stake by the price shown:
Total return = stake × decimal odds
So A$10 on a selection priced at 3.00 has a potential total return of A$30. Here are a few more examples:
| Decimal odds | Stake | Potential total return | Potential profit |
|---|---|---|---|
| 1.50 | A$10 | A$15 | A$5 |
| 2.00 | A$10 | A$20 | A$10 |
| 3.00 | A$10 | A$30 | A$20 |
| 5.00 | A$10 | A$50 | A$40 |
The key thing to remember is that total return and profit are different. Total return includes your stake. Profit is what is left once you take the stake away.
How to work out returns and profit
To find your potential profit, subtract the stake from the total return:
Profit = total return − stake
Say you are looking at odds of 3.00 and thinking about a A$50 stake:
- Stake: A$50
- Decimal odds: 3.00
- Potential total return: A$50 × 3.00 = A$150
- Potential profit: A$150 − A$50 = A$100
These sums help you understand a price before you decide. They don’t make the outcome any more likely, and you could still lose the whole stake.
What do higher and lower odds mean?
Lower odds generally mean the market sees an outcome as more likely. Higher odds generally mean it sees it as less likely. A selection at 1.50 pays less for the same stake than one at 4.00.
A higher price does not make a bet better. It reflects a different view of the outcome, and no price guarantees what will happen. It helps to keep two questions apart:
- How much could this bet return if it wins?
- How likely is the outcome to happen?
Decimal odds answer the first question exactly. They only hint at the second.
What is implied probability?
Implied probability is the chance a price suggests, shown as a percentage:
Implied probability (%) = 100 ÷ decimal odds
- Odds of 2.00 imply 50%.
- Odds of 4.00 imply 25%.
- Odds of 1.50 imply about 66.7%.
These are raw figures, not true chances of winning. Bookmakers build a margin into their prices, so the implied probabilities across every outcome in a market usually add up to more than 100%. That margin is one reason you shouldn’t treat prices as perfect predictions.
Decimal vs fractional vs American odds
Decimal odds aren’t the only format. The UK often uses fractional odds and the US uses American odds. All three can describe the same price:
| Format | Example | What it means for a A$10 stake |
|---|---|---|
| Decimal | 3.00 | A$30 total return if it wins |
| Fractional | 2/1 | A$20 profit, plus your A$10 stake back |
| American | +200 | A$20 profit, plus your A$10 stake back |
For Australian punters, decimal odds are the most convenient because you can find the total return with one multiplication.
How do multis work with decimal odds?
A multi combines two or more selections into one bet, and every leg must win. You get the combined price by multiplying the individual prices:
- First leg: 1.80
- Second leg: 2.00
- Combined odds: 1.80 × 2.00 = 3.60
- A$10 stake: A$10 × 3.60 = A$36 potential total return
This assumes both legs win and the bet settles at that combined price with no deductions. Adding more legs raises the potential return, but it also adds more ways for the whole bet to lose.
Common mistakes when reading prices
- Mixing up profit and total return: your stake is included in the total return.
- Thinking higher odds mean better value: a bigger price alone doesn’t mean an outcome is fairly priced.
- Treating implied probability as a promise: even short-priced favourites lose.
- Ignoring price changes: odds can move before an event, so check the price and terms when you confirm.
- Forgetting the risk: a potential return is not guaranteed income, and you can lose what you stake.
Betting legally and safely in Australia
Before using any betting service, check that it is licensed in Australia. The ACMA lists licensed wagering providers and explains what online services are banned. If betting is affecting your money, mood or relationships, Gambling Help Online offers free, confidential support on 1800 858 858.
Make decimal odds easy to understand
Decimal odds come down to three things: the price, your stake and the potential return. Once you see how they connect, you can read prices, compare formats and tell profit apart from the money you put in.
Keep exploring with our guide to esports best-of formats, more sports articles, or the Leon sportsbook overview. Questions? Get in touch with the team at LEON. Only bet if it is legal for you to do so, and never stake money you can’t afford to lose.