Each Way Bet Calculation
When placing an each way bet it’s not always clear what your return is going to be. With an each way bet we are actually placing 2 seperate bets. 1 bet on the win and 1 bet on the place. Let’s use a horse race as an example. If our horse wins we win both the win part and the place part. If the horse only places we lose the win part but win the place part.
You backed Tiger Roll to win the Grand National, you placed a £5 each way bet at odds of 10/1. That means a total stake of £10, £5 on the win and £5 on the place.
The bookie is paying 6 places and the terms are 1/5. This means if the horse comes in positions 2-6 you will win the place part at one fifth of the odds of the bet.
Tiger Roll wins the national so both parts of our bet have won. You will be paid as follows.
Win: £5 at 10/1 pays £55 (£5 x 10 = £50 plus our £5 stake back)
Place: A fifth of 10/1 is 2/1 (10 divided by 5) so the place part of the bet is paid as £5 at 2/1 = £15 (£5 x 2 = £10 plus your £5 stake back).
Total Return: WIN + PLACE = £55 plus £15 = £70
If your horse finished in places 2nd to 6th then you just get the place returns of £15, while the win part of the bet would have lost.
Why Bet Each Way?
Each way betting is a way to hedge your bets. Betting on the win alone is great but there’s less chance of a return. We have a much greater chance of a return by betting each way because we get a payout if our horse places. If the odds are high enough then we can still make a profit even if the horse only places.