The payback rate calculator requires you to fill the odds offered by a bookmaker for the three possible outcomes of a match. It calculates what percentage of the total amount received as stakes the bookmaker pays out as profit for the betters. This calculator helps you estimate the competitiveness of the odds offered by the bookmaker. The payback rate may vary by bookmaker, league and match.
You can also use the calculator in another way. In the three columns you can write the odds offered by two or three different bookmakers and check if you can achieve risk-free profit through arbitrage.
Note: The term "risk-free profit" should not mislead you. Profit gained through arbitrage is risk-free only in theory but not in practice. There are various factors that contribute to the risk. For example, after you place your first bet, the other bookmaker might have changed its odds for the event meanwhile and you would not be able to carry out your plan. In this case your initial bet remains uncovered and your money is at risk. Of course, you can still close the position and eliminate the risk but the final result of the whole operation will most likely be with a negative sign.
If p >1, placing three separate bets for the following amounts will guarantee you profit of a certain amount regardless of the result of the match.