Implied odds are basically pot odds that take into account the probable future bets in a hand. As a definition implied odds are the ratio between the size you expect the pot to be after the last betting round and the size of the call you must make to remain in the hand. To see your pot odds as a percentage you divide the size of the call you must make by the size of the current pot plus the amount you think you and your opponent would put into the pot if you made your draw. This means that if you think your opponent will call a big bet on the river if you make your draw, you are able to call a bigger amount on the turn because you feel it is positive expected value for the big amount you can win on the river.

For example, if the after the turn the pot is $100 and your opponent bets $50 making the pot $150 your odds to win the hand would have to be 25% ($50/$200) to make the call if you are just looking at pot odds. However, if you’re looking at implied odds and you think your opponent would definitely call another $50 bet on the river if you make your hand, then your odds to win the hand would only need to be 17% ($50/$300) to justify making the call.

Continuing with the example above, since you only need a 17% chance of making the best hand you can call with any flush draw (20%) or even any open-ended straight draw (17.4%). You calculate these percentages of making your hand by dividing the number of outs you have to make the hand by the number of cards in the deck remaining unseen. For example, to calculate the 20% chance of making the flush draw you just divide the 9 cards that finish the flush by the 46 cards that you haven’t seen. As long as your odds to make the best hand are above the implied odds percentage then it is positive expected value to make the call.

Let’s look at another more detailed example where we can walk you through every step you should take when deciding to make the call based on your implied odds. You have (4D,5D) and after the turn the board shows (6D, 3D, AH, KS). The pot was $100, but your opponent has just made a pot size bet of $100, making the pot $300 if you decide to make the call. You are putting your opponent on a big Ace, possible (A,K) so you feel they either have top pair top kicker or top two pair. To be safe you should assume your opponent has (A,K) when calculating your implied odds. Since your opponent likely has a big hand you feel they will call at least another $100 on the river if you make your hand. This means that overall you are calling $100 to win $500, which means your odds of winning the hand must be better than 20% to justify making the call. There are 46 cards remaining unseen and you have 9 outs to make a flush and 8 outs to make a straight. However, 2 of the cards make both the straight and the flush so your total outs decreases to 17 and since you are putting your opponent on (A,K) then the ace or king of diamonds completes their full house which is a superior hand to your flush, which means the total outs decreases again down to 15. Since you have 15 outs to make the best hand your odds of winning the hand are 33% (15/46). This 33% is much larger than the 20% implied odds, so you should definitely make the call.

One big mistake a lot of players make when calculating their implied odds is being too optimistic. Your opponent will not always call a pot size bet on the river. If you always calculate your pot odds assuming your opponent will be making a big river call you will often price yourself in to call when it is really not justified and it is in fact a negative expected value call. When deciding what you think your opponent will call on the river you should be very conservative in your assumptions to ensure that you are actually getting the right price to call. Remember that you are playing the hand like you have a draw, so if you are playing against a strong opponent often times you won’t even get any action on the river. If you are conservative when calculating your implied odds then over time the folds and big calls will all even out and you will be a positive value player.

Other Advanced Texas Hold'em Poker Strategy:

Being Aware of Future Hammer Bets

Playing Tournaments with Huge Fields

Value Betting

Continuation Betting

Taking Down the Table Bully