How Parlays Work in Sports Betting
Learn how parlay bets work, their higher payouts, and why they carry more risk than single wagers.
How Are Parlay Payouts Calculated?
A parlay pays your stake times the product of every leg's decimal odds. See the formula, a worked three-team example and what happens when a leg pushes.
By the Lunaris Editorial TeamPublished Nov 4, 2026
A parlay payout is your stake multiplied by the decimal odds of every selection, multiplied together. If any selection loses, the parlay loses. If a selection pushes, it is removed and the payout is recalculated with the remaining selections.
Total return = stake × odds₁ × odds₂ × … × oddsₙ (in decimal odds). Your win is the total return minus the stake.
Step 1: Convert American Odds to Decimal
Sportsbooks in the US usually show American odds. Convert each one to decimal before multiplying:
| American odds | Formula | Decimal odds |
|---|---|---|
| Positive, e.g. +150 | 1 + (150 ÷ 100) | 2.50 |
| Negative, e.g. -110 | 1 + (100 ÷ 110) | 1.909 |
| Even, +100 | 1 + (100 ÷ 100) | 2.00 |
How sports betting odds work explains the formats in more depth.
Step 2: Multiply the Legs
Take a $10, three-team parlay:
| Leg | American | Decimal |
|---|---|---|
| Team A moneyline | -110 | 1.909 |
| Team B moneyline | -110 | 1.909 |
| Team C moneyline | +150 | 2.50 |
1.909 × 1.909 × 2.50 = 9.11
Total return: $10 × 9.11 = $91.12. Win: $91.12 − $10 = $81.12.
The same $10 bet as three separate singles would win far less, but each single only needs its own team to win. The parlay pays more because all three must win.
What Happens When a Leg Pushes
At Lunaris, a selection graded as a push is removed from the parlay, and the remaining selections decide the adjusted payout. If Team A pushes in the example above:
1.909 × 2.50 = 4.77, so the $10 parlay now returns $47.73.
The parlay does not lose because of the push; it becomes a two-team parlay.
Why Payouts Grow So Fast
Each leg multiplies the payout, and each leg also multiplies the chance of losing. Two -110 legs each win a little more than half the time, but together they win only around a quarter of the time before the sportsbook's margin, and every leg you add cuts that again. That is the trade behind every parlay: bigger payouts in exchange for a smaller chance of cashing. How parlays work covers the basics.
Quick Reference
- Convert every leg to decimal odds.
- Multiply all the decimal odds and the stake: that is the total return.
- Subtract the stake to get the win.
- A loss loses the parlay; a push removes that leg and recalculates.
You can build parlays yourself in the Lunaris Sportsbook or let InstaParlay generate them. You must be 21 or over to play. Please play responsibly.
Reviewed November 4, 2026.
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