How to calculate payout for a back bet on 1×2 betting?

There are two stages in calculating the payout for back bet in the 1×2 betting. For example, suppose you support team A to beat team B at an odds of 2.88 with a principal of £100.

Step 1: Calculate return excluding commission

Odds * Stake = £ return

In our example: 2.88 * 100 = £288

Therefore if Team A won your bet would return £288 – including stake, with a £188 profit.

However, because betting exchanges don’t add a margin into the odds, unlike bookmakers, you need to subtract the commission from the profit.

Step 2: Calculate return with commission

((Stake * (Odds -1)) * Commission rate

In our example that would be: ((100 * (2.88 -1)) * 2% = £3.76 commission

In our example you would be charged £3.76 commission, meaning your return would be £284.24, a profit of £184.24

If the match ends in either a draw or a Team B victory, you would lose the bet and your £100 stake.

Even when commission is factored in to the odds, you will generally find that Smarkets has the best price, a result of our industry-low 2% commission on winning bets only.

Once you learn how to calculate betting profit margins, you can compare the profit margins of different bookmakers and exchanges to find out who offers you the best odds