# Price Probability betting calculator

The Price Probability calculator
calculates:

- The implied probabily of any given
price
- the mathematically correct price for any given probability

**Calculating the implied
probability of any given price**

This shows that a price of

**2.62** implies a probability
of

**38.17%**. In other words, if a horse is priced at

**2.62**
and you think that it has more than a

**38.17%** chance of
winning, you would be getting good value by backing it at

**2.62**. Conversely, if you thought that
the horse had less than a

**38.17%** chance of winning, you
would lay it at

**2.62**.

**Calculating the mathematically correct price for any given probability**

This shows that if you thought Tiger Woods had a

**70%**
chance of winning a golf tournament going into the final day, the mathematically
correct price would be

**1.43**. If you want to back (lay)
Tiger, you would try to back him at a higher (lower) price in order to get
some value.