How To Calculate Parlay Odds

Understanding how to calculate parlay odds requires doing some math. Fortunately, it’s not high-level trigonometry.

Here’s the step-by-step process using a hypothetical $50 wager:

1) Convert the American odds from each leg of your parlay into decimal odds. To do this, let’s go back to ninth-grade algebra.

If the American odds are positive (+110, +130, +400, etc.), use this formula:

(American odds / 100) + 1 = Decimal odds

If the American odds are negative (-110, -220, -650, etc.), use this formula (disregard the negative symbol that precedes the numeric odds):

(100 / American odds) + 1 = Decimal odds

So if you have a two-leg parlay of +130 and -150, the corresponding equations to convert to decimal odds would be:

(130 / 100) + 1 = 2.3

(100 / 150) + 1 = 1.7 (after rounding)

2) Next, multiply these decimal odds by each other. So using the above example:

2.3 * 1.7 = 3.9 (after rounding)

3) Now multiply the above answer (3.9) by your bet amount ($50). The answer: $195. This is the total amount you would receive if you won a $50 two-team parlay with odds of +130 and -150.

What’s important to note is this amount includes your original $50 bet (which you get back if you win). So your actual winnings (profit) on this two-team parlay would be $145 ($195 – $50).

Implied Probability of a Moneyline Parlay

Now that you know how to calculate how much money a parlay would potentially pay, let’s discuss how to figure out the true odds of a parlay. Then we’ll use those true odds to determine the implied probability of winning your parlay.

Let’s use this example of a $10 parlay comprised of four moneyline bets:

• Odds for Team A: -150 (decimal odds: 1.67)
• Odds for Team B: +140 (decimal odds: 2.40)
• Odds for Team C: -170 (decimal odds: 1.59)
• Odds for Team D: -105 (decimal odds: 1.95)

Using the formulas in the above section, we know the potential payout for this parlay (not including the initial $10 bet) is $114.27

So what are your true odds? For ease of math, let’s drop the 27 cents and take 114 (potential win amount) and divide it by 10 (your wager amount). This equals 11.4, so your true odds are 11.4 to 1 (meaning, for every $1 you wager you stand to win $11.40).

Now let’s convert 11.4 to 1 into American odds using this formula:

(Decimal odds – 1) * 100 = American odds

So: (11.4 – 1) * 100 = 1040

So the true American odds on this parlay are +1040

Important note: The above formula is for decimal odds that are 2.00 or greater (for our example, our decimal odds are 11.4). For decimal odds ranging from 1.01 to 1.99, use this formula to convert to American odds:

-100 / (decimal odds – 1) = American odds

Let’s Do Some (More) Math

Now that we know the odds of our four-team parlay (+1040), we can calculate the implied probability of the parlay winning. Here’s the equation to determine implied probability:

100 / (American Odds + 100) * 100

Let’s plug in the numbers:

100 / (1040 + 100) * 100 = 8.77 (after rounding to the nearest hundredth)

So our bet has an implied probability of 8.77% — meaning, theoretically speaking, there’s an 8.77% chance that this four-team parlay will hit.

Now let’s compare the implied probability of our hypothetical four-team parlay with another hypothetical, this one a $10 two-team parlay, with each leg having -110 odds. Such a bet would have a payout of $26.45 (not including the initial $10 wager).

So we know to determine the true odds, we have to divide $26.45 by 10, which equals 2.65 (after rounding). Therefore, our true odds are 2.65 to 1. Converting that to American odds:

(2.65 – 1) * 100 = 165 (so +165)

Now we plug in the implied probability formula:

100 / (165 + 100) * 100 = 37.74 (after rounding)

So our $10 two-team parlay has a 37.74% chance of winning — not surprisingly, far better than the 8.77% chance of hitting our $10 four-team parlay.

Calculating point spread parlay odds is just as easy as doing so for moneyline parlays. In fact, our above example of two teams with -110 odds pretty much spells out the formula.

But here’s another hypothetical, this time a $100 three-leg parlay using NBA point spreads:

• Philadelphia 76ers -3.5 (-110 odds)
• Boston Celtics +5.5 (-105 odds)
• Golden State Warriors -7.5 (-120 odds)

Again, you simply convert those American odds to decimals:

• 76ers decimal odds: 1.91
• Celtics decimal odds: 1.95
• Warriors decimal odds: 1.83

Multiplying those three figures together, we get a product of 6.8. Now take 6.8 and multiply it by our wager about ($100) and we get a total payout of $680. Subtract the wager amount, and the actual (potential) profit is $580.

When you’re trying to build a parlay in a betting app, you might see tabs that say “same-game” and “multi-game” parlay betting. These parlays are exactly as they sound.

A same-game parlay is one in which all the legs are from a single game/event, while a multi-game parlay is compiled using matchups from multiple games/events.

Whichever parlay type you choose, the formulas for calculating odds, payouts and win probabilities remain the same.

Some bettors don’t have the time to calculate parlay odds and payouts, especially if the parlay includes a bunch of legs. This is where parlay calculators can help.

The tool allows you to input betting odds for as many legs of a parlay as you desire, as well as your intended wager amounts. Then, with a click of a button, you’ll see your projected payout.

Parlay calculators are completely legal and can help you ensure that the odds being offered are fair (odds vary by sportsbook). Just as you should shop around for the best betting lines, you should do the same with parlay odds.

Your bankroll will thank you.

The answer to this question depends on many factors, including your bankroll, risk tolerance and (perhaps most importantly) expectations.

If you put together a moneyline parlay with nothing but big favorites — for instance, a four-teamer of -250, -270, -350, -500 — your chances of winning are decent, but your potential payout would be minimal.

Conversely, an all-underdog moneyline parlay could yield a huge financial windfall, but the odds of it hitting are very slim.

The same is true when it comes to the number of legs you add to your parlay. Fewer legs mean better chances of winning but a lower potential payout, while more legs mean lower odds of winning but a bigger potential payout.

Which brings us to expectations: Yes, parlays are fun and potentially lucrative. But because they’re difficult to hit (especially consistently), you should play them sparingly, risk minimal amounts of your betting bankroll and prepare to lose far more often than you win.

Although parlays bring a great deal of excitement to sports betting, they aren’t always as good as a straight bet. The reason behind that is due to the risk that comes with parlay betting.

Yes, the big payouts that parlays bring to the table are thrilling, but they’re also tougher to pull off. You have better odds of making money off a single straight bet than cashing in on a seven-leg parlay.

That isn’t to say that you shouldn’t bet on parlays. It might be a long shot, but there is money to be won with them. However, they’re quite unpredictable, which should be kept in mind.

It’s easy to get caught up in parlays, which is why it’s best to use them in moderation, especially if you’re new to the scene.

You can place a parlay bet whenever you want, but some situations present a better shot at winning (and, conversely, other situations reduce the odds of cashing).

For example, putting together a parlay on a day with limited options on the betting menu isn’t particularly wise—fewer games means sharper betting lines (because oddsmakers have less research to do). So it’s difficult to find value on days with little on the schedule.

On the other hand, betting value is much easier to find on a college football or college basketball Saturday. That’s because there are hundreds of games on the board, meaning more opportunities to unearth weak betting lines.

So throwing two to four games in a parlay on these days might make sense, provided you’ve done your research and believe you have an edge. Which leads to another point: You shouldn’t make a bet—be it a straight wager or parlay—unless you feel confident it will win.

If you blindly fire 10 straight bets or a couple of six-team parlays without doing any homework, you’re almost certainly going to drain your bankroll—and quickly.

Is it Smart to Use Correlation Theories When Betting Parlays?

We’ve already established (multiple times) that winning a parlay—any parlay—isn’t easy. But you can put yourself in a better position by, again, doing your research. This involves studying a multitude of things, including team and player stats, current and past trends, weather reports, officials tendencies, and home-field/home-court advantage.

One way to get a bit of an edge betting parlays is to use that research to correlate your wagers (legs). Here are two examples:

Hypothetical #1: It’s an NFL Sunday in November. The Tampa Bay Buccaneers are 11-1 and averaging 32 points per game, including scoring 42, 38, 35 and 41 points in their last four contests. Tampa is hosting the Atlanta Falcons, who are 2-10 and giving up 28.5 points per game, including 30-plus points the previous three weeks.

The Buccaneers have defeated Atlanta five of the last six times they’ve played, and all six games went Over the total. Tampa Bay is a 10.5-point favorite, and the Over/Under is 52. Given the situation, a two-team correlated parlay of Tampa Bay and the Over seems logical.

Hypothetical #2: The Baltimore Orioles have the worst record in the American League, but they’ve won five of their last six games and have their best (and hottest) pitcher on the mound for a battle in Boston, where the Red Sox are just 2-8 in their last 10 games.

Meanwhile, out on the West Coast, the Padres are riding a six-game winning streak and hosting an Arizona Diamondbacks squad that has lost seven straight overall and nine of their last 11 when playing in San Diego.

Baltimore is a +150 underdog; San Diego is a -190 favorite. Considering the matchups, trends and recent form of all four teams involved, putting the Orioles and Padres in a two-team parlay makes sense.

How Do You Calculate a Push in a Parlay?

A push occurs when one (or more) of the legs in your parlay ends in a tie—for instance, if the New England Patriots were 5-point spread favorites and won by exactly five points.

Anytime a leg of a parlay pushes, that leg is simply removed and the parlay is recalculated. So if you had a four-leg parlay and there was one push, it automatically would be reduced to a three-leg parlay.

You can avoid pushes by building a parlay that only includes point-spread bets with a half-point attached to them. For example, a 3.5-point spread in football, a 9.5 run total in baseball and a 1.5 “puck line” in hockey.

The most important thing to remember when it comes to pushes and parlays: Your bet is still alive as long as all the other legs of the parlay win. However, if any leg of a parlay loses, the entire parlay is toast, no matter how many other legs won or pushed.

So a four-team parlay with two winners and two pushes will cash out as a two-team parlay winner. However, a three-leg parlay with two pushes and one loser is just that — a loser.