# Stake

A **stake **refers to the amount of money placed on a bet for potential monetary gain. It represents the total investment in a given bet.

A stake is always a numerical, monetary value. For example, if you placed a £5 bet on Atletico Madrid to beat Real Madrid, your stake would be £5.

If a bet is unsuccessful, the bookmaker keeps the stake.

The size of stake placed on a bet partially determines the returns and total payout received in the event of a selection being successful. However, the stake alone will not determine returns and payout - the odds assigned to the outcome will also determine the size of returns and payout.

## Using stake to calculate returns

Returns refers to the profit gained from a successful bet. The formula to calculate returns differs depending on the type of odds used by the bookmaker.

### Calculating returns with decimal odds

To calculate returns using decimal odds, the following formula is used.

(Stake * decimal odds) - stake

For example

Barcelona vs Real Madrid - Barcelona to win at odds of 1.85 with a £20 stake

20 * 1.85 = 37

37 - 20 = 17

Returns = £17

### Calculating returns with fractional odds

To calculate returns using fractional odds, the following formula is used:

Stake * (numerator / denominator)

For example

Liverpool vs Everton - under 2.5 goals at odds of 3/1 with a £5 stake

5 * (3 / 1) = 15

Returns = £15

### Calculating returns with American odds

There are two separate formulas for calculating returns with American odds, depending on whether you have backed an outcome with positive or negative odds.

#### Calculating returns with positive odds

To calculate returns on a positive odds bet, the following formula is used:

Stake * (odds / 100)

For example

Arsenal vs Chelsea - Arsenal to win odds of +250 with a $10 bet stake

10 * (250 / 100) = 25

Returns = $25.

#### Calculating returns with negative odds

To calculate returns on a negative odds bet, the following formula is used:

Stake * ((100 / (odds * - 1))

For example

Liverpool vs Everton - Liverpool to win at odds of -400 with a $10 stake

10* ((100 / (-400 * -1)) = 2.5

Returns = $2.50.

## Using stake to calculate payout

Payout refers to the total amount the bettor receives back from the bookmaker after backing a successful outcome, including their original stake.

### Calculating payout with decimal odds

Decimal odds represent the total payout for every £1 placed on an outcome, meaning payout is relatively simple to work out.

To calculate payout using decimal odds, the following formula is used:

Stake * decimal odds

For example

Barcelona vs Real Madrid - Barcelona to win at odds of 1.85 with a £20 stake

20 * 1.85 = 37

Payout = £37

### Calculating payout with fractional odds

To calculate payout using fractional odds, the following formula is used.

(Stake * (numerator / denominator)) + stake

For example

Liverpool vs Everton - over 2.5 goals at odds of 3/1 with a £5 stake

(5 * (3 / 1)) + 5 = 20

Total payout = £20

### Calculating payout with American odds

To calculate payout using American odds, there are two separate formulas to use depending on whether you have backed an outcome with positive or negative odds.

#### Calculating payout with positive odds

To calculate payout on a positive odds bet, the following formula is used:

(Stake * (odds / 100)) + stake

For example

Arsenal vs Chelsea - Arsenal to win odds of +250 with a $10 bet stake

(10 * (250 / 100) + 10 = 35

Payout = $35.

#### Calculating payout with negative odds

To calculate payout on a negative odds bet, the following formula is used:

(Stake * ((100 / (odds * - 1))) + stake

For example

Liverpool vs Everton - Liverpool to win at odds of -400 with a $10 stake

(10* ((100 / (-400 * -1))) + 10 = 12.5

Payout = $12.50.