Parlay Betting Calculator
Understanding Parlay Betting: High Risk, High Reward
A parlay bet is a single wager that links together two or more individual bets, known as "legs." For a parlay to win, every single leg within the parlay must be successful. If even one leg fails, the entire parlay loses. This all-or-nothing nature makes parlays inherently riskier than individual bets, but it also offers the potential for significantly higher payouts.
How Parlays Work
Instead of placing separate bets on multiple games, a parlay combines them into one. The odds of each individual leg are multiplied together to create much longer, combined odds for the entire parlay. This multiplication effect is what generates the large potential payouts that attract many bettors.
For example, if you bet on Team A to win at 2.00 odds and Team B to win at 1.80 odds in separate bets, you'd need to win both to profit from both. In a parlay, if you combine them, your odds become 2.00 * 1.80 = 3.60. If you stake $10 on this parlay, your potential payout is $36.00, yielding a $26.00 profit. If you had bet $5 on each separately, and both won, you'd get ($5 * 2.00) + ($5 * 1.80) = $10 + $9 = $19 total payout, for a $9 profit.
Calculating Parlay Odds
Our calculator uses decimal odds for simplicity, as they are the easiest to multiply. However, sportsbooks often display odds in American or Fractional formats. Here's how to convert them to decimal:
- American Odds (Positive): If the odds are positive (e.g., +150), the formula is
(American Odds / 100) + 1. So, +150 becomes (150 / 100) + 1 = 1.50 + 1 = 2.50. - American Odds (Negative): If the odds are negative (e.g., -200), the formula is
(100 / |American Odds|) + 1. So, -200 becomes (100 / 200) + 1 = 0.50 + 1 = 1.50. - Fractional Odds: If the odds are fractional (e.g., 3/2), the formula is
(Numerator / Denominator) + 1. So, 3/2 becomes (3 / 2) + 1 = 1.50 + 1 = 2.50.
Once all your individual leg odds are in decimal format, the calculation is straightforward:
Total Combined Decimal Odds = Odds Leg 1 * Odds Leg 2 * ... * Odds Leg N
Potential Total Payout = Stake Amount * Total Combined Decimal Odds
Potential Total Profit = Potential Total Payout - Stake Amount
Example Parlay Calculation
Let's say you want to place a $25 parlay bet with three legs:
- Leg 1: Team A to win at 1.90 decimal odds
- Leg 2: Over 2.5 goals in Game B at 2.10 decimal odds
- Leg 3: Player C to score a touchdown at 2.75 decimal odds
Using the formula:
- Total Combined Decimal Odds: 1.90 * 2.10 * 2.75 = 10.9725
- Potential Total Payout: $25 * 10.9725 = $274.31
- Potential Total Profit: $274.31 – $25 = $249.31
As you can see, a relatively small stake can lead to a substantial payout if all three legs hit.
Advantages and Disadvantages of Parlays
Advantages:
- High Payout Potential: The primary draw of parlays is the chance to win a large sum from a small initial stake.
- Excitement: Following multiple games with a single bet can add an extra layer of excitement to sports watching.
Disadvantages:
- High Risk: The biggest drawback is that all legs must win. A single loss means the entire parlay is busted.
- Lower Probability: As you add more legs, the probability of all outcomes occurring decreases significantly.
- Bookmaker Edge: The house edge (vig) is compounded with each leg, making parlays generally less favorable in the long run compared to straight bets.
Tips for Parlay Betting
- Research Each Leg Thoroughly: Treat each leg as if it were a standalone bet. Don't just add legs for the sake of it.
- Limit the Number of Legs: While tempting to chase huge payouts, the more legs you add, the lower your chances of winning. Most successful parlay bettors stick to 2-4 legs.
- Consider Correlated Parlays (if allowed): Some sportsbooks might offer "same-game parlays" where outcomes are related (e.g., a team to win and their star player to score). Be aware that many traditional parlays disallow highly correlated events.
- Manage Your Bankroll: Due to their high-risk nature, parlays should typically represent a smaller portion of your overall betting bankroll.
Use our Parlay Betting Calculator to quickly determine potential payouts for your multi-leg wagers and understand the risk-reward dynamics before placing your bet.