How Parlay Betting Works
A parlay is a single sports wager that involves two or more individual bets combined into one. The appeal of a parlay is the significantly higher payout compared to placing each bet separately. However, there is a catch: every single leg of the parlay must win for you to collect the payout.
Our Parlay Calculator automatically converts your American odds (-110, +150, etc.) into multipliers to calculate your exact potential payout and profit.
Calculating Parlay Payouts
To calculate the payout of a parlay manually, you must first convert American odds into decimal odds (multipliers).
- Positive Odds (e.g., +150): (Odds / 100) + 1 = 2.50
- Negative Odds (e.g., -110): (100 / |Odds|) + 1 = 1.91
Once all legs are converted to decimals, multiply them all together. Finally, multiply that combined total by your original bet amount to find your total payout.
Risk vs. Reward
While hitting a 5-leg parlay provides an incredible return on investment, the true mathematical probability of winning drops drastically with each leg you add. This is known as the Implied Probability.
Sportsbooks love taking parlay bets because the "house edge" (vigorish or vig) compounds with every leg added to the ticket. It is an exciting way to bet a little to win a lot, but statistically riskier than straight betting. Learn more about Parlay gambling.