American Odds – Definition, Formula & Examples
American odds are a format used in sports betting to show how much money you can win relative to a $100 bet. They are mainly used in the United States and are also known as moneyline odds.
American odds are displayed using positive (+) or negative (–) numbers and indicate whether a team or outcome is considered an underdog or a favorite.
What Are American Odds?
American odds express the relationship between risk and reward in a bet, a basic principle of how sports betting odds work.
-
Positive odds (+) show how much profit you win from a $100 bet
-
Negative odds (–) show how much you must bet to win $100
This system makes it easy to identify favorites and underdogs at a glance.
Types of American Odds
Positive American Odds (+)
Positive American odds indicate an underdog and show how much profit you can win on a $100 bet.
Formula
- Profit = (Odds × Stake) ÷ 100
- Total Payout = Stake + Profit
Example
- Odds: +200
- Stake: $100
Profit = (200 × 100) ÷ 100 = $200
Total Payout = $300
👉 You win $200 profit and receive $300 total.
Negative American Odds (–)
Negative American odds indicate a favorite and show how much you must bet to win $100.
Formula
- Profit = (Stake × 100) ÷ |Odds|
- Total Payout = Stake + Profit
Example
- Odds: –150
- Stake: $150
Profit = (150 × 100) ÷ 150 = $100
Total Payout = $250
👉 You win $100 profit and receive $250 total.
American Odds Table
| Odds Type | Example | Meaning |
|---|---|---|
| Positive | +200 | Win $200 on a $100 bet |
| Negative | -150 | Bet $150 to win $100 |
| Underdog | +300 | Higher risk, higher reward |
| Favorite | -200 | Lower risk, lower reward |
How to Convert American Odds to Implied Probability
Implied probability shows the bookmaker’s estimated chance of an outcome happening.
Positive Odds (+)
Formula
- Implied Probability = 100 ÷ (Odds + 100)
Example
Negative Odds (–)
Formula
- Implied Probability = |Odds| ÷ (|Odds| + 100)
Example
150 ÷ (150 + 100) = 60%
Why American Odds Are Used
American odds are popular because they:
- Clearly show favorites vs underdogs
- Are intuitive for U.S. bettors
- Make profit calculations straightforward
- Are ideal for moneyline betting
American Odds vs Other Odds Formats
| Format | Region | Example |
|---|---|---|
| American | USA | +200 / -150 |
| Decimal | Europe, LATAM | 3.00 / 1.67 |
| Fractional | UK | 2/1 / 4/6 |
Summary
- American odds use positive and negative numbers
- Positive odds show the profit on a $100 bet
- Negative odds show the amount you need to bet to win $100
- American odds can be converted into implied probability
- They are commonly used in U.S. sports betting
