Breakage Calculator

Calculate how much pari-mutuel breakage costs you. Compare dime, nickel, and penny breakage rules used at different tracks.

Formula:Breakage = Exact Payoff - Rounded Payoff

Breakage Results

Exact Payoff
$4
You Receive
$4
Breakage Lost
$0
Paid to youLost to breakage (1.60%)

Breakage Rule Comparison

RuleYou GetLost
Dime (most common)$4$0
Nickel (California)$4$0
Penny (rare)$4$0
💡
Hidden Cost: At 500 bets/year, this breakage rate costs you ~$35 annually.
$

The precise payoff before breakage is applied

Calculate total breakage for multiple winning tickets

How Breakage Works

Exact Payout
$4.37
Dime Break
$4.30
+
Lost
$0.07

Quick Answer

Breakage is the hidden cost of rounding down pari-mutuel payouts. Most US tracks use dime breakage ($0.10 rounding), which adds roughly 1-2% to the effective takeout. California's nickel breakage is more player-friendly.

Key Facts

Dime BreakageRounds to $0.10 - most common in US
Nickel BreakageRounds to $0.05 - California tracks
Hidden CostAdds 1-2% effective takeout
Worst CaseLose $0.09 on every payout (dime)

Frequently Asked Questions

What is breakage in horse racing?

Breakage is the difference between the exact calculated payout and the rounded-down amount the track actually pays. If the calculated payoff is $4.37, dime breakage rounds down to $4.30—the track keeps the $0.07 difference.

What is dime vs nickel breakage?

Dime breakage rounds down to the nearest $0.10 (most common in US). Nickel breakage rounds to $0.05 (better for bettors, used in California). Penny breakage rounds to $0.01 (rare but most player-friendly).

How much does breakage cost bettors?

Breakage adds an extra 1-2% "hidden" takeout beyond the posted rate. Over time, this significantly impacts returns. California's nickel breakage saves bettors roughly 0.5% compared to dime breakage.

Why does breakage exist?

Breakage originated when tracks couldn't pay exact amounts (no coins smaller than $0.10). Modern technology could eliminate it, but tracks keep breakage as additional revenue since it's rarely questioned.