Each-Way Betting Explained: How Each-Way Terms Actually Work

Each-way is probably the most common bet type in horse racing, and also one of the most misunderstood. A lot of punters place each-way bets for years without knowing exactly how the "each-way" part of their return is actually worked out. Here's the full picture.

What an each-way bet actually is

An each-way bet is really two separate bets combined into one:

1. A win bet - pays out only if your horse wins.
2. A place bet - pays out if your horse finishes in one of the specified "places" (which could include first, depending on the race).

When you place a £10 each-way bet, you're not staking £10 total - you're staking £10 on the win part and £10 on the place part, so £20 leaves your account. Both halves are settled independently.

Why it exists

Backing a horse to win outright is high-risk - even a strong favourite loses more often than it wins. Each-way betting gives you a partial return if your selection runs well but doesn't quite win, which is especially useful in horse racing where big fields make outright winners hard to predict.

How the place part is worked out

Two things determine your place payout: how many places pay, and what fraction of the odds you get.

Number of places

This depends on the race type and field size, and it's set by the bookmaker for each race:

Race type	Runners	Places paid
Standard non-handicap	5-7	1st, 2nd
Standard non-handicap	8+	1st, 2nd, 3rd
Handicap	12-15	1st, 2nd, 3rd
Handicap	16+	1st, 2nd, 3rd, 4th
Big-field handicaps (e.g. Grand National)	16+	Often 1st-5th or 1st-6th (bookmaker specific)

Many bookmakers also run "extra places" promotions on major festival races, sometimes paying out to 5th or 6th place even on smaller fields - always worth checking the terms before you place a big-race bet.

Each-way terms (the fraction)

The place part doesn't pay full odds - it pays a fraction of your win odds, shown as the each-way terms:

• 1/4 odds - most common terms, used on most handicaps with big fields.
• 1/5 odds - used on some big-field handicaps (like the Grand National), and on many non-handicap races.

So if your horse is 8/1 and the each-way terms are 1/4, the place part of your bet pays out at 2/1 (8 divided by 4).

A worked example

Say you back a horse each-way at 10/1, each-way terms 1/4, 3 places paid, with a £10 each-way stake (£20 total).

If your horse wins:

• Win part: £10 stake x 10/1 = £100 winnings + £10 stake back = £110
• Place part: £10 stake x 2.5/1 (10/1 ÷ 4) = £25 winnings + £10 stake back = £35
• Total return: £145

If your horse finishes 2nd or 3rd (but doesn't win):

• Win part: loses - £10 gone
• Place part: £10 stake x 2.5/1 = £25 winnings + £10 stake back = £35
• Total return: £35 (a £15 profit on your £20 outlay)

If your horse finishes outside the places:

• Both parts lose - £20 gone.

You can run your own numbers instantly with our Each-Way Calculator - just enter your stake, odds, terms, and how many places paid.

A couple of things worth knowing

• Rule 4 deductions apply to each-way bets too, on both the win and place portions, if a horse is withdrawn after you bet. See our Rule 4 explainer for how that's calculated.
• Non-runners get your stake back on both parts - the each-way bet is voided for that selection as normal.
• Some bookmakers offer better each-way terms as a promotion (extra places, better fractions) on specific big races - it's genuinely worth comparing before betting on a major festival.
• Each-way isn't always the best structure. On short-priced favourites, the place part often barely covers your stake even if it wins - a straight win bet, or a different structure entirely, can make more sense depending on the odds.

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