How Bookmaker Margin Works

The margin (also called "vig" or "juice") is how bookmakers guarantee profit. Understanding it helps you find better value.

What is Bookmaker Margin?

In a fair market:

• Team A at 2.00 (50%) + Team B at 2.00 (50%) = 100%

But bookmakers offer:

• Team A at 1.91 + Team B at 1.91 = 104.7%

That extra 4.7% is the margin, the bookmaker's cut.

Calculating Margin

Margin = (1/Odds1 + 1/Odds2 + ... + 1/OddsN - 1) × 100%

Two-Way Market (Tennis)

• Player A: 1.85
• Player B: 2.00

Margin = (1/1.85 + 1/2.00 - 1) × 100% = 4.05%

Three-Way Market (Football)

• Home: 2.10
• Draw: 3.40
• Away: 3.50

Margin = (1/2.10 + 1/3.40 + 1/3.50 - 1) × 100% = 5.9%

Use our Margin Calculator for instant results.

Why Margin Matters

Long-Term Cost

With 4% margin and $1,000 monthly turnover:

• Monthly "tax": ~$40
• Yearly: ~$480

Finding Value

Lower margin = closer to true odds = easier to find value bets.

Margin by Bookmaker

Margin by Sport/Market

Beating the Margin

Line Shopping

Compare odds across 5+ bookmakers. Take the best odds every time.

Bet Exchanges

Betfair has ~2% commission instead of margin.

Focus on Low-Margin Markets

Stick to major events where competition drives margins down.

Related Tools

• Margin Calculator
• Odds Converter
• Implied Probability
• Double Chance Calculator
• Draw No Bet Calculator

Track and compare bookmaker margins over time with the Bookmaker Tracker.

Conclusion

Margin is the price you pay to bet. Minimize it by shopping for best odds and choosing low-margin bookmakers like Pinnacle.