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Rule 4 normally reduces the profit from a winning fixed-price bet after a relevant non-runner is withdrawn.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The deduction is linked to the withdrawn horse's price at the reference time stated in the operator's rule. That may be the market when the bet was placed or the price when the withdrawal became official. 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Price of withdrawn horse and standard deduction from each £1 of profit
Price of withdrawn horseDeduction per £1 profit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 →