For decimal odds, the formula for calculating implied probability is: (1 / Decimal Odds) x one hundred. For example, if the percentages are 2.00, the implied likelihood is (1 / 2.00) x one hundred = 50%. Essentially, this implies the bookmaker believes there is a 50% probability of the event occurring.

With fractional odds, the numerator indicates potential revenue while the denominator signifies the stake. Using a simple method, should you place a $10 wager at 8/1 odds, the potential winnings could be calculated as follows: (Stake x Numerator) / Denominator = Profit