How is a Rule 4 deduction calculated?

Rule 4 normally reduces the profit from a winning fixed-price bet after a relevant non-runner is withdrawn. The returned stake is kept separate. Multiply the original profit by the deduction rate, subtract that amount from the profit, then add the stake back.

Rule 4 calculation in three steps
StepCalculation
Original profitStake × fractional odds
DeductionOriginal profit × deduction pence ÷ 100
Adjusted returnStake + original profit − deduction

Worked example: £10 at 4/1 with a 20p deduction

A £10 win bet at 4/1 makes £40 profit before the deduction. Rule 4 removes 20% of that profit, which is £8. The adjusted return is therefore £42: the £10 returned stake plus £32 adjusted profit.

Illustrative Rule 4 settlement
StakePriceOriginal profitDeductionAdjusted return
£10.004/1£40.00£8.00£42.00

Standard Rule 4 deduction table

The deduction is linked to the withdrawn horse's price at the relevant time. A shorter-priced non-runner has a larger effect on the remaining market, so it produces a larger standard deduction.

Price of withdrawn horse and standard deduction from each £1 of profit
Price of withdrawn horseDeduction per £1 profit
1/9 or shorter90p
2/11 to 2/1785p
1/4 to 1/580p
3/10 to 2/775p
2/5 to 1/370p
8/15 to 4/965p
8/13 to 4/760p
4/5 to 4/655p
20/21 to 5/650p
Evens to 6/545p
5/4 to 6/440p
8/5 to 7/435p
9/5 to 9/430p
12/5 to 3/125p
16/5 to 4/120p
9/2 to 11/215p
6/1 to 9/110p
10/1 to 14/15p
Over 14/1No deduction

When Rule 4 may not apply in the same way

Ante-post bets commonly use all-in, run-or-not terms. Bets placed after a market has been reformed already use prices formed without the earlier withdrawal. Each-way bets have separate win and place profit calculations, and operator-specific concessions can change the final deduction.

For an each-way bet, first use the each-way calculator to separate the two returns. Then check the operator's published rule and the deduction shown on the settled bet. The calculator reproduces the arithmetic; it cannot decide whether a bookmaker applied its terms correctly.

Read the complete Rule 4 deductions guide →