1. What is Implied Probability?

Implied probability is the conversion of betting odds into a percentage that represents the likelihood of an outcome occurring. It accounts for the bookmaker's margin and provides insight into the expected probability behind the odds.

2. How Does the Calculator Work?

The calculator uses the implied probability formula for negative odds:

Where:

• \( P \) — Implied probability (0-1)
• \( Negative\ Odds \) — The American odds format (e.g., -150, +200)

Explanation: The formula converts American odds into the implied probability that the outcome will occur.

3. Importance of Implied Probability

Details: Understanding implied probability helps bettors assess whether a wager offers value by comparing it to their own estimated probability of an outcome.

4. Using the Calculator

Tips: Enter the negative odds in American format (e.g., -150). The calculator will output the implied probability as a decimal between 0 and 1.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between positive and negative odds?
A: Negative odds indicate favorites (e.g., -150 means you need to bet $150 to win $100), while positive odds indicate underdogs (e.g., +200 means a $100 bet wins $200).

Q2: How do I convert implied probability back to odds?
A: For negative odds: Odds = (100 * P) / (1 - P). For positive odds: Odds = (100 * (1 - P)) / P.

Q3: What does an implied probability of 0.6 mean?
A: It means the bookmaker is estimating a 60% chance of that outcome occurring.

Q4: Why is the sum of implied probabilities usually over 100%?
A: Bookmakers add a margin (overround) to ensure profit, making the total implied probability exceed 100%.

Q5: How can I use implied probability for betting?
A: Compare the implied probability to your own assessment. If your probability is higher than the implied probability, the bet may have value.