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Calculating Football Bookmaker Commission

Written by Glenn Roberts
Glenn is a sports lover and writes about Soccer and American Football. He also covers reviews of bookmakers, betting apps and deposit or withdrawal methods that players can use at online sportsbooks.
, | Updated: November 6, 2025

Calculating Football Bookmaker CommissionDespite the fact that bookies have existed for a long time, the term was not used until the 19th century. It is safe to say that the gambling industry has experienced staggering growth in recent years, with new bookies emerging almost every day.

Needless to say, there is no significant difference between what bookies used to do in the past and what they do today. Perhaps the biggest difference is that many bookmakers now operate online, giving their patrons greater flexibility. You may have already noticed that most interactive sportsbooks claim to offer the most advantageous odds. One of the most important things football fans should keep in mind is that bookies allow them to place wagers on a broad variety of markets and adjust the odds so they can secure a guaranteed profit, regardless of the outcome of the matchup.

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Bookmakers’ Margin Explained

Bookmakers' Margin ExplainedFootball lovers who want to learn more about the commission of bookmakers should know that punters refer to it in several ways. The commission bookies take is also known among soccer bettors as the vig, margin, take, or cut. Regardless of which term you encounter, they all refer to the commission bookmakers deduct from every wager placed by gamblers.

It is essential to remember that these values vary between bookmakers, and sometimes the margin differs on the same event. Additionally, in an attempt to attract soccer fans, bookies tend to offer reduced juice on certain events, meaning they provide more favorable odds. Many soccer bettors mistakenly believe that odds are determined solely by a bookie’s assessment of which team is more likely to win. This is only partially true.

When bookies adjust the odds of a particular matchup, their main goal is to make the prices attractive enough so that bettors will wager on both sides of the market. They do this to balance their liability across possible outcomes. However, if the liability were perfectly balanced, bookies would not make any money. That is why they include a margin, ensuring they turn a profit even when the action is evenly split.

What is a Fair Market

What is a Fair MarketFootball lovers can understand bookmakers’ margins by looking at a coin toss. The probability of each outcome is 50%, so the odds should be around 2.0. Let’s assume you and a friend each wager $10. If you bet on tails and it lands, you win $10; if heads lands, you lose $10. In this situation, neither you nor your friend has an edge because the odds reflect the true probability of each outcome. This situation is known as a 100% market, meaning neither the bettors nor the bookmaker has an advantage, so there is no margin.

Still, if we assume that the bookie you use allows you to bet on a coin toss but wants to earn a profit, the market percentage will exceed 100%. The amount above 100% represents the bookmaker’s margin, or the commission you pay for using its services.

In simple terms, the coin toss example shows how bookies operate. One of the most important things football bettors should remember is to always check the margin of the online bookie with which they have registered. This is critical because the margin directly affects the odds available and the potential profit you can earn.

Returning to the coin toss example, if the bookmaker offers odds of 1.90, a $10 stake would return $19. Your expected loss would be $1, which is how the bookmaker earns money.

How to Estimate the Market Margins

How to Estimate the Market MarginsObviously, bookies do not offer odds that reflect the true probability of an event, because that would eliminate their profit. Instead, they post odds that imply probabilities higher than the true likelihood, giving them an edge. As stated earlier, this difference is the bookmaker’s margin.

One of the factors that separates seasoned football bettors from newcomers is that experienced players understand the variations in margins between different bookies. Novice bettors should also learn how margins are calculated, because doing so reveals the relationship between the margin, the odds, and the profit they can achieve.

With that in mind, let’s calculate a margin. Do not worry about complicated math; the steps are straightforward. First, find the implied probability of each possible outcome. Suppose Juventus faces Napoli and the odds are 3.10 for Juventus, 2.30 for Napoli, and 3.30 for the draw. Divide 1 by each set of odds to obtain 0.322, 0.434, and 0.303 respectively. Add these numbers together to get 1.059, which means the market margin is 105.9%. Remember, this method works for a 1×2 market, where you can bet on either team to win or on a draw.

To calculate the margin for a two-way market, divide 1 by the odds for the first selection, do the same for the second, add the results together, and multiply the sum by 100. The final figure is the bookmaker’s margin.

How is Football Betting Commission Calculated

How is Football Betting Commission CalculatedNow let’s look at how to calculate the football betting commission. Fortunately, it is easier than it may seem. Assume Barcelona is priced at 1.97 and Arsenal at 3.70. Before you place a wager, calculate the bookmaker’s commission to decide whether the bet is worthwhile. For this example, let’s use a 4% commission rate and a $100 stake.

Therefore, the formula for the commission is ((stake x odds) – stake) x commission rate. Using the Barcelona example, it becomes (($100 x 1.97) – $100) x 0.04 = $3.88.

In this case, the commission is $3.88. Your profit would be $93.12, and your total return would be $193.12.

After you understand how commission is calculated, you may want to know how to find the true odds. As you probably know, posted odds rarely reflect your actual chance of winning. True odds represent your real probability of success.

Once the commission is known, finding the true odds is simple. Use the formula ((stake x odds) – commission) / stake. In our example, it is (($100 x 1.97) – 3.88) / $100 = 1.9312.

You can also use online calculators to estimate football bookmaker commissions in just a few clicks. Select your preferred odds format, enter the odds, and the tool will show the true odds, potential payout, and margin. Most calculators can handle both two-way and three-way markets.

Tracking Down the Best Markets

Tracking Down the Best MarketsFootball bettors can increase their potential profits by learning to spot the best odds on the events they plan to bet on. This skill is often the hardest for newcomers to master.

Compare the odds offered by several bookies and choose the most favorable prices. Even a small difference can affect your overall profit. By shopping for the best odds, you also reduce the commission the bookie effectively charges, which further improves your position. Margins can vary widely between bookmakers, leading to substantial differences in potential returns. Being aware of this will help you get the most out of each betting session.

Conclusion

ConclusionWe hope you now understand how important it is to calculate football bookmaker commission. Knowing how the commission is derived helps you identify the bookies that offer the most favorable odds on the events you want to bet on, giving you a better chance of achieving positive results.

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