# Decimal odds

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Canonical: https://novigapi.com/learn/decimal-odds

Decimal odds express a price as the total amount returned per unit staked, including the stake, so 2.50 returns $2.50 for every $1 bet.

```
decimal = 1 / p; total return = stake x decimal; profit = stake x (decimal - 1)
```

Decimal odds show the total payout per unit of stake, stake included. At 2.50, a $10 bet returns $25: $15 profit plus the $10 back. They are the standard format in Europe, Australia and Canada, and the most convenient for calculation, because implied probability is just 1 divided by the decimal and parlays multiply directly. Any decimal price above 2.00 is an underdog; below 2.00 is a favorite.

## How it works

Implied probability is 1 / decimal. Converting to American odds: if the decimal is 2.00 or more, American = (decimal - 1) x 100, shown with a plus sign; if it is below 2.00, American = -100 / (decimal - 1). A parlay's decimal price is the product of its legs' decimal prices, so two legs at 1.909 make 1.909 x 1.909 = 3.645. Decimal odds also make the Kelly criterion simple, since its net odds b are just decimal minus 1.

## Worked example

Decimal odds on a $50 stake

| Decimal | Implied probability | American | Total return | Profit |
| --- | --- | --- | --- | --- |
| 1.50 | 66.67% | -200.0 | $75.00 | $25.00 |
| 1.80 | 55.56% | -125.0 | $90.00 | $40.00 |
| 2.00 | 50.00% | +100.0 | $100.00 | $50.00 |
| 2.75 | 36.36% | +175.0 | $137.50 | $87.50 |
| 5.00 | 20.00% | +400.0 | $250.00 | $200.00 |


At 1.80: 1 / 1.80 = 55.56%, -100 / 0.80 = -125, and $50 x 1.80 = $90 returned. The [odds converter](https://novigapi.com/odds-converter) handles every format.

## On Novig

A Novig price converts to decimal odds by dividing 1 by the percentage. A Yes contract at 40% is decimal 2.50; at 62% it is 1.613. That makes decimal odds the natural bridge between Novig and sportsbooks. To compare fairly, use the ask, which is 1 minus the best bid on the other outcome, and include the taker fee on live game markets: buying at 40% in-game costs $0.4144 per contract after the 0.06 x 0.40 x 0.60 = $0.0144 fee, a decimal of 2.413. Per [Novig trading fees](https://docs.novig.com/api/concepts/fees) (checked 12 Nov 2026), pregame game-market fills carry no fee. The [Novig odds converter](https://novigapi.com/novig-odds-converter) shows the conversion with and without it.

## Common mistakes

- Confusing decimal and fractional odds. Decimal 3.00 is fractional 2/1, not 3/1.
- Subtracting the stake twice. Decimal odds already include the stake; profit is stake x (decimal - 1).
- Rounding too early. 1.91 and 1.909 look the same but compound differently across a parlay.

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