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
| Rule | You Get | Lost |
|---|---|---|
| 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.
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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.
US Tracks
California
Player Friendly
Low Odds
How this works
Calculations follow the published mathematics of the game — combinatorics for cards, probability theory for dice, and expected-value accounting for wagers. Results are verified against independent references (primarily Wizard of Odds). No calculation here is an opinion or recommendation; it is arithmetic applied to the rules of the game.
What this tool can’t do
When to consult a professional
This tool computes probability and expected value. It is not a betting system and cannot predict the outcome of any individual wager. If gambling is causing problems for you or someone you know, call the National Problem Gambling Helpline at 1-800-GAMBLER.
Sources
- [1]Wizard of Odds — Michael Shackleford, ASAIndustrywizardofodds.comAccessed Apr 21, 2026
Actuary; widely cited casino-game probability reference. Used for house-edge and EV verification.
- [2]National Council on Problem GamblingOfficial sourcencpgambling.orgAccessed Apr 21, 2026
Responsible-gambling guidance and 1-800-GAMBLER helpline.
Joseph OrdunaFounder & Software Engineer
Full-stack software engineer specializing in embedded systems, web architecture, and AI/ML. Founder of Practical Web Tools. Built the gesture-controlled drone IP acquired by KD Interactive (Aura Drone, sold on Amazon).
Breakage Results
Exact Payoff
$4
You Receive
$4
Breakage Lost
$0
Paid to youLost to breakage (1.60%)
Breakage Rule Comparison
| Rule | You Get | Lost |
|---|---|---|
| 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.