Selection Wins

• 1). Understand that if your horse wins, you are entitled to winnings on both halves of the betting stake. The equation reads: (Bet x Odds) + (Bet x 1/4 of Odds) + 1/2 Stake + 1/2 Stake = Each Way Winnings
  In this equation, the bet is the amount of money you placed on the racer. The odds are the probability that the racer will win, and the stake is the total amount of money you placed on the racer to either win or finish near the top (twice the bet).
  
  
• 2). Plug variables into the equation. Let's say you bet $100 on a horse ($200 betting stake), running at 3 to 1 odds, in an each way bet. The horse wins the race. The equation would read: ($100 x 3) + ($100 x .75) + 100 + 100 = Each Way Winnings.
  
  
• 3). Calculate the each way winnings. In this example, the answer would be: 300 + 75 + 100 + 100 = $575
  
  

Selection Doesn't Win

• 1). Understand that half your betting stake will be lost if your selection doesn't win. Set up the equation for each way winnings if your selection finishes in one of the top spots. The equation would read: (Bet x Odds x 0) + (Bet x 1/4 of Odds) + 1/2 Stake = Each Way Winnings
  In this equation, the bet is the amount of money you placed on the racer. The odds are the probability that the racer will win, and the stake is the total amount of money you placed on the racer to either win or finish near the top.
  You lose half the stake since your racer did not win. The loss is represented here by the 0 in the first part of the equation.
  
  
• 2). Plug in the variables. Using the same example as above, the equation would read: ($100 x 3 x 0) + (100 x .75) + 100 = Each Way Winnings
  
  
• 3). Calculate the each way winnings for the racer that did not win, but placed highly. The result would be: 0 + 75 + 100 = $175
  In this instance you would lose money, since your total betting stake was $200. Remember that the amount of money the bettor wins or loses fluctuates with the odds and the final position of the racer.