Equal-profit cash hedge
Hedge stake = return ÷ opposing odds
Sports betting hedge formula: start with the full return
For a cash bet, multiply original stake by decimal odds. A $100 bet at 4.00 has a total return of $400 if it wins.
The total return includes the original stake. Using the winnings alone would make the hedge too small.
Step 2: divide by the opposing odds
At opposing odds of 2.50, divide $400 by 2.50 to get a $160 hedge. Both outcomes pay a gross return of $400.
Step 3: subtract all cash stakes
Total cash committed is $100 + $160 = $260. Each outcome therefore has net profit of $400 − $260 = $140.
The hedge bet calculator does these three steps for you, rounds the hedge to the cent and recalculates both outcomes from the rounded stake.
American and decimal odds
Positive American odds convert to 1 + odds/100. Negative odds convert to 1 + 100/absolute odds. +300 is 4.00 and −150 is approximately 1.6667.
Sports betting hedge example with American odds
You bet $50 on an underdog at +400. It is now one game from winning, and the other side is −200.
- Convert the odds: +400 is 1 + 400/100 = 5.00, and −200 is 1 + 100/200 = 1.50.
- Full return: $50 × 5.00 = $250.
- Hedge stake: $250 ÷ 1.50 = $166.67 after rounding to the cent.
- Total cash staked: $50 + $166.67 = $216.67.
- Original bet wins: $250 − $216.67 = $33.33. Hedge wins: $166.67 × 1.50 − $216.67 = $33.34.
The one-cent difference comes from rounding the hedge stake. Without the hedge, the same bet would end either $200 up or $50 down.
Partial hedges
You do not have to hedge the full amount. For any smaller hedge stake, work out each outcome separately: if the original bet wins, the net is stake × (odds − 1) − hedge; if the hedge wins, the net is hedge × (opposing odds − 1) − stake.
With $100 at 4.00 and the other side at 2.50, the full hedge is $160. Hedging $80 instead gives $300 − $80 = $220 if the original bet wins and $80 × 1.50 − $100 = $20 if the hedge wins: more upside, less protection.
Know what is outside the model
The standard formula excludes commissions, tax, voids, pushes, dead heats, rule differences and incomplete coverage. A hedge is not a promise of profit.
Formulas behind the other calculators
Each calculator uses its own model. The core idea is the same: size the new stakes so every outcome returns the same amount, then subtract all cash staked.
Final parlay leg
Hedge stake = full parlay return ÷ opposing odds. The return includes the original stake. Try the parlay hedge calculator.
Three to five outcomes
Each new stake = (stake on A × odds of A) ÷ odds of that outcome. See the multi-way hedge calculator.
Stake-not-returned bonus bets
Hedge stake = bonus × (odds − 1) ÷ opposing odds. The bonus itself is not a cash cost. Use the bonus bet hedge calculator.
Risk-free (second-chance) bets
Hedge stake = (stake × odds − conversion rate × refund) ÷ opposing odds, where the refund is paid as a bonus bet if the qualifying bet loses. Try the risk-free bet hedge calculator.
Profit boosts
Effective odds = 1 + (odds − 1) × (1 + boost). Then apply the standard formula with the profit boost hedge calculator.
Back and lay
Lay stake = back stake × back odds ÷ (lay odds − commission). Liability = lay stake × (lay odds − 1). Open the back-to-lay hedge calculator.
Two-outcome arbitrage
Stake on each outcome = budget × (1 ÷ its odds) ÷ (1 ÷ odds A + 1 ÷ odds B). Check it with the arbitrage hedge calculator.
