How Are Money Lines Calculated
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Reviewed by Calculator Editorial Team
Money lines are one of the most common betting formats in sportsbooks. They represent the probability of an outcome occurring without any point spread or handicap. Understanding how money lines are calculated helps bettors make informed decisions about their wagers.
What Are Money Lines?
Money lines are odds that represent the probability of an event occurring without any point spread or handicap. They are typically expressed as positive or negative numbers, where the absolute value represents the amount you would win per $100 wagered.
Key Points
- Money lines show the probability of an outcome without any point spread
- Positive money lines indicate a favorite team or outcome
- Negative money lines indicate an underdog team or outcome
- The absolute value represents the payout per $100 wagered
How to Calculate Money Lines
The calculation of money lines is based on the implied probability of an outcome. The formula to calculate the implied probability from a money line is:
Formula
For a positive money line (favorite):
Implied Probability = 100 / (Money Line + 100)
For a negative money line (underdog):
Implied Probability = (Money Line / (Money Line - 100))
This formula converts the money line into a decimal probability between 0 and 1, which can then be converted to a percentage.
Example Calculation
If a team is listed at +200:
Implied Probability = 100 / (200 + 100) = 0.333 or 33.3%
This means the bookmaker believes there's a 33.3% chance the team will win.
Positive and Negative Money Lines
Money lines can be either positive or negative, indicating whether a team or outcome is a favorite or underdog.
| Money Line | Interpretation | Payout Example |
|---|---|---|
| +150 | Favorite (150% return on $100) | $150 profit on $100 wager |
| +200 | Favorite (200% return on $100) | $200 profit on $100 wager |
| -110 | Underdog (100% return on $110) | $110 profit on $100 wager |
| -150 | Underdog (100% return on $150) | $150 profit on $100 wager |
The sign of the money line indicates whether the team is a favorite (+) or underdog (-). The absolute value represents the payout per $100 wagered.
Money Line vs. Point Spread
Money lines and point spreads are two different ways to bet on sports events. While money lines represent the probability of an outcome without any handicap, point spreads include a handicap that levels the playing field between two teams.
Key Differences
- Money lines show the probability of an outcome without a handicap
- Point spreads include a handicap that levels the playing field
- Money lines are typically used for single-game outcomes
- Point spreads are more common for multi-game series
Bettors often use both money lines and point spreads to create parlays or to hedge their bets. Understanding the differences between these two betting formats can help bettors make more informed decisions.
Practical Example
Let's look at a practical example to illustrate how money lines work. Suppose you're betting on a basketball game between Team A and Team B.
| Team | Money Line | Implied Probability | Payout |
|---|---|---|---|
| Team A | +250 | 28.6% | $250 profit on $100 wager |
| Team B | -300 | 25.0% | $300 profit on $100 wager |
In this example, Team A is the favorite with a money line of +250, while Team B is the underdog with a money line of -300. The implied probabilities show that the bookmaker believes Team A has a 28.6% chance of winning, while Team B has a 25.0% chance of winning.
If you wager $100 on Team A and they win, you would receive $250 in profit, resulting in a total payout of $350. If you wager $100 on Team B and they win, you would receive $300 in profit, resulting in a total payout of $400.
Frequently Asked Questions
Money lines represent the probability of an outcome without any handicap, while point spreads include a handicap that levels the playing field between two teams. Money lines are typically used for single-game outcomes, while point spreads are more common for multi-game series.
For a positive money line (favorite), use the formula: Implied Probability = 100 / (Money Line + 100). For a negative money line (underdog), use the formula: Implied Probability = (Money Line / (Money Line - 100)).
A positive money line indicates that the team or outcome is a favorite. The number represents the amount you would win per $100 wagered. For example, a +200 money line means you would win $200 on a $100 wager.
A negative money line indicates that the team or outcome is an underdog. The number represents the amount you would need to wager to win $100. For example, a -150 money line means you would need to wager $150 to win $100.
For a positive money line, the payout is the money line amount per $100 wagered. For a negative money line, the payout is $100 per the absolute value of the money line wagered. For example, a +200 money line pays $200 on a $100 wager, while a -150 money line pays $100 on a $150 wager.