American Betting Odds Explained – Favorites, Underdogs & Payouts
If you’re new to sports betting, odds such as -150 and +130 can look confusing.
These are called American odds or Moneyline odds. They help show the market’s implied probability of an outcome and determine how much a winning bet would pay.
The most important thing to understand is the plus (+) or minus (-) sign.
This beginner-friendly guide explains positive and negative American odds, favorites, underdogs, payouts and profit calculations with simple examples.
Disclaimer: This article is for educational purposes only. Sports betting involves financial risk, and odds do not guarantee an outcome.
What Are American Betting Odds?
American odds are a common format used by sportsbooks to display betting prices.
They normally appear as either:
-150
or
+150
The sign is important because it changes how the odds are interpreted.
American odds use $100 as a reference point, but this does not mean you must bet exactly $100.
Your actual stake can be different, subject to the sportsbook’s betting limits.
What Do Negative Betting Odds Mean?
Negative odds generally indicate the favorite in a two-outcome market.
For example:
Team A: -150
At odds of -150, you would need to risk $150 to make $100 in profit.
If the bet wins:
- Stake: $150
- Profit: $100
- Total Return: $250
If the bet loses, the $150 stake is lost.
The more negative the odds, the higher the market-implied probability before accounting for the sportsbook’s margin.
What Do Positive Betting Odds Mean?
Positive odds commonly represent the underdog.
For example:
Team B: +150
At +150, a successful $100 bet produces $150 in profit.
If the bet wins:
- Stake: $100
- Profit: $150
- Total Return: $250
If it loses, the $100 stake is lost.
Positive odds therefore show how much profit a $100 winning wager would generate.
Favorite vs Underdog Explained
Understanding these two terms makes American odds much easier.
Favorite
The favorite is the outcome the market prices as more likely to win.
Favorites are commonly displayed with negative Moneyline odds.
Example:
Team A -150
Underdog
The underdog is priced as less likely to win than the favorite.
Underdogs commonly have positive odds.
Example:
Team B +130
Importantly, being the favorite does not mean a team is guaranteed to win. Betting odds reflect market pricing and implied probability, not certainty.
Simple American Odds Example
Suppose a sportsbook displays:
Team A: -105
Team B: +105
For Team A at -105, you would risk $105 to make $100 profit.
If Team A wins:
Stake returned = $105
Profit = $100
Total return = $205
For Team B at +105, a $100 winning wager produces $105 profit.
If Team B wins:
Stake returned = $100
Profit = $105
Total return = $205
This also demonstrates why profit and total return are not the same thing.
Profit vs Total Payout
This is one of the most common areas of confusion for beginners.
Suppose you wager $100 at +150.
If the bet wins:
Profit = $150
But you also receive your original $100 stake back.
Therefore:
Total Return = $250
The same principle applies to negative odds.
If you risk $150 at -150:
Profit = $100
Original Stake Returned = $150
Total Return = $250
How to Calculate Profit from Negative American Odds
For negative odds, use:
Profit = Stake × (100 ÷ Absolute Value of Odds)
Example:
You wager $60 at -150.
Profit:
$60 × (100 ÷ 150) = $40
Total return:
$60 + $40 = $100
You don’t have to wager $150 simply because the odds are -150.
How to Calculate Profit from Positive American Odds
For positive odds:
Profit = Stake × (Odds ÷ 100)
Example:
You wager $50 at +150.
Profit:
$50 × (150 ÷ 100) = $75
Total return:
$50 + $75 = $125
Do You Have to Bet $100?
No.
The $100 figure is simply the reference point used to explain American odds.
For example, at +200:
A $100 winning bet produces $200 profit.
But a $10 winning bet would produce:
$10 × 2 = $20 profit
Likewise, negative odds can be scaled to different stake amounts.
American Odds and Implied Probability
American odds can also be converted into an implied probability.
For negative odds:
Probability = |Odds| ÷ (|Odds| + 100)
For positive odds:
Probability = 100 ÷ (Odds + 100)
For example, -150 corresponds to an implied probability of:
150 ÷ 250 = 60%
Meanwhile, +150 corresponds to:
100 ÷ 250 = 40%
However, sportsbook odds generally include a built-in margin, often called the vig or juice, so the displayed probabilities should not automatically be interpreted as objective “true” probabilities.
Does Negative Odds Mean the Team Will Win?
No.
Negative odds indicate that an outcome is priced as the favorite, not that it will definitely win.
For example, a team priced at -150 can still lose.
Similarly, an underdog at +150 can still win.
Sports results remain uncertain regardless of the odds.
Common American Betting Odds Mistakes
Thinking Negative Odds Mean Losing Money
A minus sign does not mean you automatically lose money. It describes how much must be risked relative to a $100 profit benchmark.
Confusing Profit with Total Return
Your total return normally includes both your profit and your original stake.
Thinking $100 Is the Required Bet
American odds use $100 as a reference. Your actual stake can usually be smaller or larger.
Assuming Favorites Always Win
Favorites can lose. Odds represent pricing and implied probability, not guaranteed outcomes.
Ignoring the Sportsbook Margin
Sportsbook odds typically contain a margin, so implied probabilities across all possible outcomes can add up to more than 100%.
American Odds vs Decimal Odds
Both formats represent the same underlying betting price but display it differently.
For example:
American odds: +150
Decimal odds: 2.50
A $100 wager at decimal odds of 2.50 returns $250 in total if successful.
American odds emphasize the profit relative to $100, while decimal odds make the total-return multiplier easier to see.
Frequently Asked Questions
What does -150 mean in betting?
Odds of -150 mean you would need to risk $150 to make $100 profit. Stakes can also be scaled proportionally.
What does +150 mean in betting?
Odds of +150 mean a successful $100 wager would produce $150 profit, plus the return of the original $100 stake.
What does the minus sign mean in betting odds?
Negative American odds generally indicate the favorite and show how much must be risked to make $100 profit.
What does the plus sign mean in betting odds?
Positive American odds generally indicate the underdog and show how much profit a successful $100 wager would produce.
Do I have to bet $100 with American odds?
No. $100 is only a reference amount. Your potential profit can be calculated proportionally for different stake sizes.
Are negative odds guaranteed to win?
No. Negative odds indicate that the outcome is priced as more likely than its opponent in a typical two-outcome market, but it can still lose.
What is the difference between payout and profit?
Profit is the amount won above your original stake. Total return or payout generally includes both the profit and the returned stake.
Conclusion
American betting odds become much easier to understand once you know what the plus and minus signs mean.
Negative odds (-) generally represent the favorite and show how much you would need to risk to make $100 profit.
Positive odds (+) generally represent the underdog and show how much profit a successful $100 wager would generate.
Remember that $100 is only a reference point, and being labeled the favorite does not guarantee a win. Odds represent market pricing, not certainty.