Negative odds represent how much money must be bet to see returns of $100.
For example, if odds of -300 were quoted, then a $300 bet would see returns of $100 and a total payout of $400.
The opposite of negative odds are positive odds, which represent the underdog in a bet, meaning this outcome is considered less likely to happen than not. The positive odds indicate how much money would be won from a $100 bet.
Calculating returns with negative odds
It is relatively straight forward to calculate returns using negative odds if you are placing a $100 bet - but often this is not the exact figure of our stake. To calculate returns on a negative odds bet, the following formula is used:
Stake * ((100 / (odds * - 1))
Liverpool vs Everton - Liverpool to win at odds of -400 with a $10 stake
10* ((100 / (-400 * -1)) = 2.5
Therefore returns would be $2.50.
Converting negative odds into decimal odds
The formula for converting negative odds into decimal odds is as follows:
100 / Odds + 1
Inter Milan vs AC Milan - Inter to win at odds of -250
100 / 250 + 1 = 1.40
Converting negative odds into fractional odds
In order to convert negative odds into fractional odds, the odds are arranged in a certain way and then reduced to their simplest form. To convert negative odds into fractional odds, the odds are arranged as follows:
And then reduced into simplest form.
Atletico Madrid vs Valencia - Atletico Madrid to win at odds of -250
100/250 reduces down to 2/5
Converting negative odds into implied probability
Implied probability is the conversion of odds into a percentage to show the expected probability of an outcome.
The formula for converting negative odds into implied probability is as follows:
Negative odds / (odds + 100) * 100 = implied probability
Manchester United vs Chelsea - Manchester United to win at odds of -200
200 / (200 + 100) * 100 = 66.7%