Lets say you've had a £10 eachway (£20 total cost) at odds of 10/1 and your horse romps home in first place – how much do you win? Well, you've got £10 @ 10/1 = £100, PLUS you also get 1/4 the quoted odds on the place part of the bet, which is £10 @ 2.5/1 = £25 giving you a total of £125 and don't forget you also get your original £20 stake returned too.
Should your horse finish in either 2nd, 3rd or 4th position, known as a ‘place' you will win £25 plus the £10 ‘place' part of your original £20 stake will be returned. You might be wondering why you only get £25 back in winnings if the odds are 10/1 and your bet was £10, shouldn't that be £100! Well no, the bookmakers only pay out a 1/4 of the quoted odds on horses that finish 2nd, 3rd or 4th and because your horse didn't finish 1st you will lose the win portion of the original stake.