Calculating a Parlay Payoff
We will illustrate using a 2-team parlay. Let us say that you like two underdogs at odds of +150 (team A) and +200 (team B). How much should a parlay using these two teams pay? If you were to wager $100 on team A and win, you would have $250 (your original $100 + $150 payout). Now if you were to turn around and place that $250 on team B and win, this pays $500 so you now have $750. Subtract the $100 you started with and you now have $650 profits. Therefore the payout on a 2-team parlay using teams at odds of +150, +200 would be +650 (6.5:1).
This can easily be placed into a spreadsheet (you can download this Microsoft Excel example . You would calculate the payout for each team (odds + 1 which represents the stake) and multiply the payout factors together. You end up with a total payout factor. We subtract 1 from this payout factor (again this represents your original stake) to get the actual parlay odds. Then simply multiply these odds times the amount wagered. It is not as complicated as it sounds, but it is much clearer in an example. Note that this table is setup for up to 6 games (above Excel example). Games left blank will default to "1" and will not effect the odds when multiplied.
| Odds | Decimal Odds | Payout | |||
| Game A | 150 | 1.500 | 2.500 | ||
| Game B | 200 | 2.000 | 3.000 | ||
| Game C | 1.000 | ||||
| Game D | 1.000 | ||||
| Game E | 1.000 | ||||
| Game F | 1.000 | ||||
| Wager | $100.00 | Factor = | 7.50 | payout | |
| 6.50 | odds | ||||
| To Win | $650.00 |
We have 2.500 * 3.000 = 7.500. When multiplied by the $100 wagered, $750 is returned. Subtract the original $100 wagered to show the profit of $650. Odds are 6.5:1 (or +650).
Now we will now add one team to the above parlay (team C a -200 favorite) and see what the 3-team parlay will pay us:
| Odds | Decimal Odds | Payout | |||
| Game #1 | 150 | 1.500 | 2.500 | ||
| Game #2 | 200 | 2.000 | 3.000 | ||
| Game #3 | -200 | 0.500 | 1.500 | ||
| Game #4 | 1.000 | ||||
| Game #5 | 1.000 | ||||
| Game #6 | 1.000 | ||||
| Wager | $100.00 | Factor = | 11.25 | payout | |
| 10.25 | odds | ||||
| To Win | $1,025.00 |
The power of parlays! Even a solid -200 favorite increases our payout to 10.25:1 (+1025)!
NOTE: When I developed this spreadsheet to figure out my parlay payoffs, I tested this online at my sportsbooks. They always came out exact, to the penny.
I will be adding an interactive Javascript example here shortly.
