# How To Calculate Liability When Laying On Betfair

## How To Calculate Your Liability On Betfair

Calculating your Liability on Betfair at first may look and sound a little complex but it is something that you will have to learn to do.

The majority of people can work out their profit from a back bet, in fact, a lot of people can work it out in their head as the calculation is very simple. However, people do not realise that the ‘formula’ to calculate liability on Betfair when laying a bet is just as simple to work out.

### So How Do We Calculate The Liability When Laying On Betfair

The basic formula can represented like the following:

### Stake Amount  x  (Lay Odds  –  1)  =  Liability

It really is that simple to calculate your liability. If you are still a little confused about how to calculate your liability, then perhaps these example will help.

Example #1:

You are going to lay a horse at odds of 3.4 with a £10 stake, so how do you calculate your liability?

£10 x (3.4 – 1) = Liability

Your liability would therefore be: £24

Example #2:

You want to calculate your liability for a £12.50 lay bet on a particular Grey Hound at odds of 6.5.

£12.50 x (6.5 – 1) = Liability

Your liability would therefore be: £68.75

Easy isn’t it. Calculating your liability really is not that difficult. It is something that people seem to not like to do but if you know how, then it is worth it.

### But why is calculating liability on Betfair important ?

Actually, there are a number of reasons as to why it is extremely important that you know exactly how to calculate your liability on Betfair.

1. Unlike, a back bet it is harder to know how much you will lose if you do end up losing. If you were to back a horse for £10 and the horse lost, then you would know that the maximum you would lose on this bet is £10. However, with a lay bet, it is not that simple. You cannot simple place a lay bet for £10 and know you will only lose £10. How much you lose depends solely on the odds: If the odds are high, you will lose a lot. If they are low, you will lose less.

2. You need to calculate liability on Betfair so that you can set yourself some limits. For example, if you didn’t want to lose any more that £50 on one bet with £10 stakes, you would be able to work out that the highest your odds can be is 6. You could therefore minimise your losses by saying to yourself that you will not lay anything with odds greater than 6.

3. If you are trading on betfair, calculating your liability can be vital as you will need to know whether or not trading out or greening up would be worth it at the current odds. For example, if you had backed at horse at 5 for £10 and then the lay odds dropped to 4.5 you could green up. But you would work out your liability so you could work out your overall total potential profit.

See, there are so many reasons for why you may need to calculate your liability. That is only three reasons, but there aremany more.