American Odds Explained: How to Read, Convert and Calculate Payouts
Learn how American betting odds work, including positive and negative prices, implied probability, potential winnings and conversions to decimal odds.
American odds are a betting format used to show either the potential profit or the amount you must risk to win a fixed profit. They are usually displayed with a plus or minus sign, such as +150 or -200.
The sign tells you how the price works: positive American odds show how much profit a $100 stake could make, while negative American odds show how much you need to stake to win $100. Once this distinction is clear, calculating returns and comparing prices becomes much easier.
How positive and negative American odds work
Positive American odds
Positive odds are generally attached to an underdog or an outcome considered less likely by the sportsbook. The number represents the profit from a $100 stake.
- +150: a $100 stake earns $150 in profit, for a total return of $250.
- +250: a $100 stake earns $250 in profit, for a total return of $350.
- +400: a $100 stake earns $400 in profit, for a total return of $500.
For a different stake, multiply the stake by the odds divided by 100. For example, a $40 bet at +150 produces $60 in profit, plus the returned $40 stake, for a total payout of $100.
Negative American odds
Negative odds are commonly associated with the favorite. The number shows how much you must stake to earn $100 in profit.
- -110: a $110 stake earns $100 in profit, for a total return of $210.
- -200: a $200 stake earns $100 in profit, for a total return of $300.
- -150: a $150 stake earns $100 in profit, for a total return of $250.
To calculate profit from a negative price, multiply the stake by 100 divided by the absolute odds. A $50 bet at -200 earns $25 in profit, so the total return is $75.
American odds payout formulas
These formulas can be used with any stake amount:
- Positive odds: profit = stake × odds ÷ 100
- Negative odds: profit = stake × 100 ÷ absolute odds
- Total return: profit + original stake
For example, suppose you place $25 on a selection priced at +180. The profit is $25 × 180 ÷ 100, which equals $45. The total return is therefore $70.
At -125, a $25 stake produces $25 × 100 ÷ 125, or $20 in profit. The total return is $45.
How to convert American odds to implied probability
Implied probability is the percentage chance suggested by the betting price before accounting for the sportsbook’s margin.
- Positive odds: implied probability = 100 ÷ (odds + 100) × 100
- Negative odds: implied probability = absolute odds ÷ (absolute odds + 100) × 100
At +150, the implied probability is 100 ÷ 250, or 40%. At -200, it is 200 ÷ 300, or approximately 66.67%.
These percentages are not guaranteed predictions. They are price-based estimates and usually include the bookmaker’s margin, sometimes called the vig or overround. The implied probabilities for every outcome in a market can therefore add up to more than 100%.
American odds compared with decimal and fractional odds
Decimal odds show the total return for each unit staked, including the original stake. For example, +150 American odds equal decimal odds of 2.50, because a $1 stake returns $2.50 in total.
Negative prices use a different conversion. Odds of -200 equal decimal odds of 1.50, meaning a $1 stake returns $1.50 in total. The equivalent fractional odds are 3/2 for +150 and 1/2 for -200.
| American odds | Decimal odds | Implied probability |
|---|---|---|
| +150 | 2.50 | 40% |
| -110 | 1.91 | 52.38% |
| -200 | 1.50 | 66.67% |
Why -110 is common in spread and total markets
Sportsbooks often price both sides of a point spread or total at around -110. A bettor risking $110 to win $100 must correctly predict the outcome more than 50% of the time to overcome the built-in margin over a large sample.
The break-even probability for -110 is about 52.38%. This does not mean every -110 wager has exactly that chance of winning; it is the win rate required to break even based on the quoted price, ignoring other costs and account conditions.
How to compare American betting odds
Compare the same market across licensed sportsbooks rather than comparing unrelated outcomes. A higher positive price offers more potential profit, while a less negative price requires less money to win the same $100 profit.
For instance, -120 is a better price for a bettor than -135 on the same selection because the required stake is lower. Similarly, +180 offers more potential profit than +150 for the same stake. The better price does not guarantee the bet will win, but it changes the long-term break-even point.
Check whether the displayed figure refers to the same market, line, settlement rules and currency. Odds can change before an event begins, and a sportsbook may apply minimum stakes, maximum payouts or other terms.
Common mistakes when reading American odds
- Confusing profit with total return: the original stake is added back only when calculating the full payout.
- Assuming a negative number means a likely winner: it indicates the price, not certainty.
- Using the positive-odds formula for a negative price, or vice versa.
- Ignoring the sportsbook margin when interpreting implied probability.
- Comparing odds without checking that the market and line are identical.
Sports betting involves financial risk. Only use operators that are legal and licensed where you live, follow the applicable minimum-age rules, and set a budget before placing any wager. Never chase losses or treat implied probability as a guarantee.
