Decimal: 1 ÷ odds × 100
Fractional: denominator ÷ (numerator + denominator) × 100
American+: 100 ÷ (odds + 100) × 100
American-: |odds| ÷ (|odds| + 100) × 100
Why it matters: Implied probability shows what the bookmaker thinks the chances are. Compare this to your own estimate to find value bets.

Understanding Implied Probability

Every set of odds implies a certain probability. Bookmakers set odds to reflect their estimated chances, plus their margin (overround).

Quick Reference

DecimalProbabilityDescription
1.5066.67%Strong favorite
2.0050.00%Even money
3.0033.33%Underdog
5.0020.00%Long shot
10.0010.00%Very unlikely

Finding Value

If you believe a team has a 50% chance of winning, but the odds imply only 40%, that's a value bet. The implied probability is lower than your estimated probability.

Stripping the Margin Out

The probability implied by a price isn't the bookmaker's honest view. It includes their margin, so it always overstates the real chance. Add up the implied probabilities for every outcome in a market and you'll get more than 100%, and the excess is the margin baked into the prices.

Getting to a Fair Estimate

To approximate a fair probability, divide each outcome's implied probability by the total for the market. If two sides imply 52.4% each, the total is 104.8%, and normalizing gives 50% each. That normalized figure is closer to what the market actually thinks, and it's the number worth comparing against your own estimate.

Using It Across Books

Implied probability is also the cleanest way to compare prices from different sources, since decimal, fractional and American odds all convert to the same scale. Two prices that look similar in fractional form can differ by a full percentage point of implied probability, and over a season those small gaps decide whether an approach makes money.

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