ODDSPIRA GUIDE

How to Calculate Expected Value in Betting

Understand expected value, expected profit and why positive EV does not guarantee a win.

What EV means

Expected value estimates the average profit or loss if comparable decisions were repeated many times.

The formula

EV = estimated probability × decimal odds − 1. At 52% and odds 2.10, EV is +9.2%.

Money expectation

Multiply EV by stake. A 20-unit stake at +9.2% EV has expected profit of 1.84 units, not a guaranteed outcome.

The hard part

The formula is easy; estimating probability accurately is difficult. Small errors can reverse the result.

Frequently asked questions

Can positive EV lose? — Yes, often in the short term.

Is +5% EV always good? — Only if the probability estimate is reliable.