Definition
Decimal odds represent total return per unit staked, including stake returned. Multiply stake by decimal odds to get total payout. Implied probability equals 1 ÷ decimal odds. A price of 2.50 means $1 bet returns $2.50 total ($1.50 profit). Anything below 2.00 is a favorite; exactly 2.00 is even money. Decimal format is standard in Europe, Australia, and Canada. Easier to compare prices and calculate parlays than American format.
Worked Example
Team A at 1.65, Team B at 2.30. Bet $100 on Team A: 100 × 1.65 = $165 total return, $65 profit. Bet $100 on Team B: 100 × 2.30 = $230 total, $130 profit. Implied probabilities: Team A = 1 ÷ 1.65 = 60.6%; Team B = 1 ÷ 2.30 = 43.5%. Combined 104.1% — the 4.1% overage is book margin.
Why It Matters
Parlay calculation is a single multiplication chain: 1.65 × 2.30 × 1.90 = true combined multiplier. No conversion required between legs.