152→ Odds
How much does the bookmaker keep?
Enter the odds of every outcome of a market. The calculator shows its margin, what it costs you in pesos and what the price would be without it.
Odds of every outcome of the market
How to remove the margin
If you spread $1,000 so that every outcome pays the same, you collect $938 whatever happens: the bookmaker keeps $62.
Without the margin (Proportional)
| Outcome | With margin | Fair chance | Fair odds |
|---|---|---|---|
| Home 1.75 | 57.1% | 53.6% | 1.86 |
| Draw 3.40 | 29.4% | 27.6% | 3.62 |
| Away 5.00 | 20.0% | 18.8% | 5.33 |
This method takes the same share from every outcome.
The five methods, side by side
| Method | Favourite 1.75 | Long shot 5.00 |
|---|---|---|
| Proportional | 1.86 | 5.33 |
| Additive | 1.82 | 5.61 |
| Power | 1.82 | 5.58 |
| Shin | 1.83 | 5.53 |
| Odds ratio | 1.84 | 5.46 |
They agree on the favourite and differ on the long shot: that is where the bookmaker hides the most margin.
Show the formula
Chance in the price = 1 ÷ odds: 1 ÷ 1.75 + 1 ÷ 3.40 + 1 ÷ 5.00 = 106.55%
Margin = sum − 100% = 6.55%
Hold = 1 − 1 ÷ sum = 6.15%
Proportional fair chance = (1 ÷ odds) ÷ sum
How the margin is worked out
Margin = sum of (1 ÷ odds) − 100%
Example: 1 ÷ 1.75 + 1 ÷ 3.40 + 1 ÷ 5.00 = 106.6%. The margin is 6.6%.
How to read it
- Add upTurn each price into a probability (one divided by the odds) and add them. With no margin they would make 100%.
- The extraWith 1.75 · 3.40 · 5.00 they add up to 106.6%. That excess is the margin: 6.6%.
- In pesosIf you spread $1,000 so every outcome pays the same, you collect $938. The bookmaker keeps $62.
- The fair priceRemove the margin and you get the odds an even market would pay. Useful for comparing prices.
Margin and hold
Margin
- Sum of the chances minus 100%
- The number almost every calculator shows
- In the example, 6.6%
Hold
- What the bookmaker keeps from a spread stake
- Always a little below the margin
- In the example, 6.2%
Related
Questions
What margin does a two-way market at 1.90 · 1.90 have?
The two chances add up to more than 100% and the margin is 5.26%. Try it in the calculator with the remove button.
Which method should I use?
Proportional is the most common and the simplest. The others assume the bookmaker loads more margin on the long shots. See the table in the calculator: they barely move the favourite's price. No method is the true one: they are different assumptions.
What if I get a negative margin?
It happens when you mix prices from different bookmakers. The chances add up to less than 100%: that is a surebet, and it has its own risks.