You’ve probably seen fractions being used to show betting odds, but what do they mean? Our guide will help you understand fractional odds when placing bets.
For new bettors, learning how to read odds can sometimes be daunting, but they’re easy to understand once you know the main ways that they’re presented!
Our guide will help you understand all things fractional odds, including advice on how to easily work out your chances when placing a bet, and how much money you could win before you put anything on the line.
What are fractional odds?
Fractional odds are a way of showing how much money you can win from a bet, based on how much money you put down. They’re also a useful way of figuring out how likely you are to win a bet, as odds with higher returns are typically determined to be less likely to happen.
As the name suggests, these odds are displayed as a fraction. For instance, when reviewing odds for sporting events, you’re likely to see odds presented like 100/1 or 7/2. But what does this mean?
How do fractional odds work?
Fractional odds are split into two sides: the left-hand side is your potential winnings if you stake the number on the right-hand side. If you stake double the right-hand number, your potential payout will double too, and so on.
Bets with a smaller gap between each side of the fraction will have lower payouts and are deemed more likely to happen, while fractions with large differences will pay more for suggested-rarer occurrences.
How to calculate payout with fractional odds
So how can fractional betting odds be explained in real life terms? Let’s use an example to show how you can work out your potential earnings with a fractional odds bet:
In this fractional odds example, Newcastle and Liverpool are scheduled to play a match against each other. The odds for Newcastle to win are 7/1, and the odds for Liverpool to win are 8/11.
If you place a £1 bet on Newcastle, and it’s a winning outcome, you’ll win 7x your stake, as well as the money you originally bet. In this case, you’d earn £7 plus your £1 stake, for total winnings of £8. If you placed £2 on Newcastle, you’d earn £16 (7 x £2 = £14, plus your original £2 stake), and so on.
Similarly, for every £11 you put on Liverpool to win, you’d earn £8 back plus your original bet. This means that a bet on Newcastle has higher returns, showing that the bookmakers believe they’re less likely to win this particular match.
Why are fractional odds used?
Fractional odds let you calculate how much more money you can earn from a bet compared to your original stake easily. They can also be simplified easily – for example, 12/8, 6/4, and 3/2 odds would all give you the same rate of exchange between your bet and your winnings, so you’ll only see bookmakers using the lowest version to make your chances easier to understand.
Fractional odds vs decimal odds
While the UK typically uses fractional odds, other countries prefer to display their odds as decimals. Decimal odds show how much you could earn when multiplying your stake by the chosen odds. For example, the decimal equivalent of 7/1 (used in our fractional odds example above) is 8.0 – meaning if you bet £1 on Newcastle to win, and you’re correct, you’d earn £8 overall.
You can use a betting calculator to help you convert between fractional and decimal odds so that you can understand your payout regardless of which method you prefer.
Now that we’ve explained how fractional betting odds work, try familiarising yourself with the other ways that bets are presented. For instance, our introduction to decimal odds and Moneyline betting guide will help you when it comes to reading odds on bets around the world. Additionally, you can learn about different betting terms to understand the language used by bookmakers more easily. Good luck!
Stay ahead of the game with the Betway Sports app! Download it now from the Play Store or the App Store to enjoy live betting, real-time updates, and exclusive offers right at your fingertips.
