How Are Parlay Odds Calculated?

Parlay betting is a favorite strategy among sports bettors for one simple reason: it offers the chance to turn a small stake into a big payday. By combining multiple bets into a single wager, parlay bets come with high-risk, high-reward potential. But to really take advantage of that, it helps to understand exactly how parlay odds are calculated — and how you can use odds comparison to your benefit.

What Is a Parlay?

A parlay combines two or more individual bets — also called "legs" — into one unified bet. In order for a parlay to win, every leg must hit. Miss just one, and the entire bet loses. Because of this risk, sportsbooks offer larger payouts for parlays compared to single bets.

The Basics of Parlay Odds Calculation

The payout for a parlay is based on multiplying the odds of each individual selection together. The more legs in the parlay — and the longer the odds — the higher the potential payout. Here’s a quick breakdown of how it works:

Example:

Suppose you place a 3-leg parlay with the following odds:

• Bet 1: -110

• Bet 2: +150

• Bet 3: -120
  
  

Step 1: Convert each leg to decimal odds:

• -110 = 1.91

• +150 = 2.50

• -120 = 1.83
  
  

Step 2: Multiply the decimal odds:

1.91 × 2.50 × 1.83 = 8.73

This means for every $1 bet, the total return is $8.73 (including the stake). A $100 bet would pay $873 in total, with $773 in profit.

Why Odds Comparison Is Crucial

One of the most important things to remember about parlays: odds can vary significantly between sportsbooks. If you’re not checking multiple platforms before placing your bet, you might be settling for lower potential returns. Even small differences in odds add up fast in a parlay.

Let’s say:

• Sportsbook A offers 8.73 total odds

• Sportsbook B offers 8.91 total odds for the same bet

That slight bump could mean an extra $18 in profit on a $100 bet. That’s where an odds comparison tool becomes essential — especially for parlays, where each leg compounds the value.

Tips for Smarter Parlay Betting

• Always compare parlay odds before placing a bet — don’t just stick with one book.

• Use a parlay calculator to double-check your expected payout.

• Limit the number of legs — adding more increases risk. Three or four is often the sweet spot.

• Watch for promos like parlay insurance or profit boosts.

• Track line movements and make sure you're getting value on each leg.

Bottom Line

Parlay odds are calculated by multiplying the decimal odds of each leg. It’s simple math, but powerful when used strategically. The most important takeaway? Odds vary by sportsbook, and using a reliable odds comparison tool — like the one on BestParlayOdds.com — can make a big difference in your long-term betting profits.

Whether you're betting on NBA, NFL, MLB, or college sports, always take a minute to check where your parlay pays the most. That small step could mean a much bigger payout.