How to Calculate Odds and Payoffs

Knowing how odds and payoffs are calculated in betting can help you to better understand wagering strategy. Odds and payoffs can change as more bets are placed, but if you've ever wondered how all those numbers are figured, you need to know a few simple formulas.

Instructions

    • 1

      Use the tote board to find out how much money has been bet on the race and how much has been bet on individual horses. The odds of a horse winning is calculated as a total bet on all horses to win or total bet on an individual horse.

    • 2

      Determine the payoff to win using the following formula:
      [(Dollar amount of your bet x First number of the odds) + (Dollar amount of your bet x Second number in the odds)] / The second number in the odds.
      For example, if the winning horse's odds were 5 to 2 and your bet on him to win was $5, then your calculation goes like this: [($5 x 5) + ($5 x 2)] / 2 = [25 + 10] / 2 = 35 / 2 = $17.50.

    • 3

      Calculate the payoff to place by taking the total place pool divided by two and dividing that by the total bet on the individual horse to place. Multiply that quantity by the amount of your bet to determine the payoff to place. For example, if there are $1000 in total place bets and there is $200 bet on horse 1 to place, then ($1000/2) / $200 = $500/$200 = $2.50.
      If you bet $2 on horse 1 to place, multiply the $2.50 by two to come up with the payoff. Here, you would win $5 ($2 x 2.50) on a $2 bet.

    • 4

      Figure the show payoff similarly by dividing the total amount in the show pool by three; then divide that quantity by the total bet on an individual horse to show. Multiply the result by the amount of your bet to determine the show payoff. For example, say there's $1200 in the show pool and $200 bet on horse 1 to show; if you bet $2 on horse 1 to show, the formula would look like this:
      ($1200/3) / $200 = $400/$200 = 2, then multiply by your bet,
      2 x $2 = $4 payoff.