How to Calculate Exact Payoffs

When betting on a horse race, you will see odds that are similar to fractions. For example, a horse coming in first may have odds of 4 to 1 or 4/1. These odds help you determine your payoff if your horse wins. The exact payoff is the amount of money you make on your bet. The payoff changes depending on how much you bet and the odds. If you think of the odds as a fraction, you can quickly calculate the payoff.

Instructions

    • 1

      Find the odds for your bet. For example, assume a horse has 1 to 5 odds.

    • 2

      Divide the fraction to put it in decimal form. In the example, 1 divided by 5 equals 0.2.

    • 3

      Multiply this decimal by the amount of money you bet. In the example, if you bet $2, then 0.2 times $2 equals 40 cents.

    • 4

      Add the amount of your bet to the number calculated in Step 3 to find the exact payoff. In the example, $2 plus 40 cents equals a payoff of $2.40.