You can calculate how much commission you will be charged by Smarkets with the following equation:
Commission charged = ((stake * odds) - stake) * commission rate
We can use a tennis match between Novak Djokovic (1.20) and Roger Federer (5.50) to work out how much commission you will pay.
You may assume your return from a £100 bet on Djokovic to win would be £120 (1.20 * £100). This doesn’t however, incorporate the 2% betting commission if you win your bet.
Using the calculation above and Smarkets’s industry-low 2% commission your return for a £100 bet on Djokovic at 1.20 can be calculated as:
So in our example, if Djokovic had won you would be charged £0.40 total commission on your bet, meaning your profit would be £19.60 and your return would be £119.60 (including stake).
Now you understand how commission is calculated, learn how higher commission rates or bookmaker margins impact your return.