Arbitrage Calculator

Alongside welcoming arbitrage bettors, Pinnacle offers an Arbitrage Calculator to assist bettors in identifying potential arbitrage betting opportunities.

Arbitrage betting is a risk-free strategy that ensures a profit by placing proportionate bets on all possible outcomes of an event across different bookmakers. This guarantees a profit regardless of the outcome.

Using the Arbitrage Calculator above, simply input the odds for any two-way or three-way market to determine if an arbitrage opportunity exists and to calculate the required stake for guaranteed profit.

There are various methods to calculate profits from arbitrage bets. This page details how arbitrage betting functions and the calculations involved, whether done manually or using an arbitrage calculator, each time a surebet is placed. Initially, we’ll explain how to identify arbitrage opportunities and demonstrate the easiest way to calculate profits by capitalizing on differing odds offered by various bookmakers. Finally, we’ll outline how to allocate your investments across individual bets.

While initially seeming complex, finding surebets and calculating profits becomes more intuitive with practice. Throughout these calculations, we’ll use decimal (European) odds for simplicity, as they require minimal conversion. You can comfortably focus on betting odds, as all bookmakers support display in decimal, fractional, or moneyline formats.

Finding Arbitrage Bets

We seek events with two potential outcomes, such as a tennis match where either Djokovic or Nadal can win, as these are the simplest arbitrage opportunities to identify.

Initially, you need to locate two sportsbooks that provide the highest odds for each player. Our arbitrage betting guide outlines strategies for discovering arbitrage opportunities. For instance, in the scenario below, one sportsbook (5Dimes) offers the best odds for the favorite (Djokovic), while another (Pinnacle) offers the highest odds for the underdog (Nadal).

If you’re looking to identify surebets independently, the following table can be a valuable resource. As mentioned earlier, your goal is to locate two sportsbooks that offer the highest odds for each outcome. One bookmaker should provide the best odds for Outcome 1, while another should offer the highest odds for Outcome 2. By familiarizing yourself with the figures in the table, you’ll be able to quickly assess whether an arbitrage opportunity exists by simply checking the odds on the sportsbooks’ websites.

Calculating Arbitrage Percentage

Once you’ve identified bookmakers offering the highest odds for a specific match, the next step is to calculate the arbitrage percentage. This percentage indicates the total return you’ll receive for an investment of 100. To determine the arbitrage percentage, divide 1 by each set of odds and sum the results. The formula is: arbitrage percentage = (1 / EU odds) * 100.

If the total of the percentages is less than 100%, then an arbitrage opportunity exists. Individually, each bookmaker’s arbitrage percentage always exceeds 100%. The surplus above 100% represents the bookmaker’s margin or profit margin, indicating the earnings the bookie anticipates from accepting bets on an event. This is why bookmakers strive to maintain a balanced book. In the example provided, 5Dimes expects to earn approximately 5% on bets (73.529% + 31.546% = 105.075%), while Pinnacle expects around 2% (84.104% + 18.182% = 102.286%). The typical bookmaker’s margin, or return rate, hovers around 5%.

In arbitrage betting, the objective is to identify odds discrepancies among different sportsbooks where the arbitrage percentage falls below 100%. This discrepancy indicates that sportsbooks either disagree on the outcome’s likelihood or have accepted disproportionate amounts of money on one event outcome. Exploiting these differing odds enables profit generation.

Therefore, the next step involves calculating the arbitrage percentage for your selected event with two possible outcomes. This calculation mirrors the method shown in the earlier table, ensuring the arbitrage percentage remains below 100% to confirm a surebet opportunity.

Calculating Profit

Thirdly, you need to compute the profit from your investment. Once you have determined the arbitrage percentage, calculating your potential profit with a specific investment amount becomes straightforward. For instance, if you have $1000 to invest, here’s how you can calculate your profit: profit = (investment / total arbitrage percentage) – investment.

Calculating Individual Bets

Lastly, you need to calculate the individual bets required to ensure equal profit regardless of the outcome. To determine the individual bets, multiply your investment by the individual percentage and then divide by the total arbitrage percentage. The formula is: individual bet = (investment * individual percentage) / total arbitrage percentage.

So, in this example, you would need to place $801.75 on Djokovic and the remaining $198.25 on Nadal to earn a profit of $90.38 from a $1000 investment.

If you find these calculations daunting, don’t worry—arbitrage calculators can perform them in seconds. This page aims to explain how sports arbitrage functions. Every day, numerous arbitrage opportunities arise with profits typically ranging from 1% to 5%, and occasionally exceeding 15%. For those seeking maximum profit while avoiding errors, it’s advisable to follow arbitrage advice closely.