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What are fair odds? Turning a probability into a price

Write any probability as American odds, then compare it with the posted price.

Fair odds are the price a bet would have if there were no sportsbook margin and the probability were exactly right. They’re the reverse of break-even: instead of turning a price into a percentage, you turn a percentage into a price.

The formula

Chance of 50% or more: −100 × chance ÷ (1 − chance)
Chance under 50%: +100 × (1 − chance) ÷ chance

Estimated chanceFair odds
62%−163
55%−122
50%+100 (even)
45%+122
40%+150

Comparing fair odds with the posted price

Say your estimate for a prop is 62%, so the fair price is about −163. If the sportsbook offers −150, it’s paying a little more than your fair price. If it offers −180, it’s paying less. That’s the same comparison as estimate versus break-even, just written in odds instead of percentages.

  • Posted price pays more than fair odds: the price is better than your estimate implies.
  • Posted price pays less than fair odds: you’re paying extra for the same chance.

The catch: fair odds are only as good as the estimate

A fair price built on a wrong probability is still wrong. A few points of error in the estimate moves the fair price a lot near the extremes, which is why GammaLine shows the reasoning and the biggest uncertainty next to every number, and publishes how its models have performed. See the model checks.

Published by GammaLine · Updated September 25, 2026

More guides: How to read prop odds: break-even and implied probability · Why a 60% prop still misses

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