What implied probability means
Implied probability is the percentage chance suggested by a set of odds. For example, decimal odds of 2.00 imply a 50% chance. This helps bettors and prediction market users understand what a price really means.
How to calculate implied probability
The simplest version is with decimal odds:
- Implied Probability = 100 / Decimal Odds
- 2.00 decimal = 50.00%
- 1.91 decimal = 52.36%
- 4.00 decimal = 25.00%
Why implied probability matters
Implied probability helps you compare bookmaker prices, estimate how likely an outcome is, and decide whether a market looks overpriced or underpriced. It is especially useful for exchange betting and prediction markets where users often think in percentages.