Crypto Portfolio Rebalancing Calculator
How This Crypto Portfolio Rebalancing Calculator Works
This calculator helps you work out how much of each cryptocurrency to buy or sell, in dollar terms, so your portfolio matches a set of target percentages. You enter the current value of each coin in USD, choose your desired allocation percentages, and the tool calculates the target value for each coin and the adjustment needed to rebalance.
The page is designed for anyone who holds a small crypto portfolio and wants a simple, transparent way to keep allocations on track. It does not matter which specific coins you own: “Coin 1”, “Coin 2”, and “Coin 3” are placeholders you can mentally map to any cryptocurrencies such as BTC, ETH, SOL, or others.
Core Rebalancing Formula
The calculator uses basic percentage math. It assumes you have three coins, each with a current dollar value and a target percentage. From these inputs, it computes how far each coin is above or below its target weight and expresses that as a buy or sell amount in USD.
First, it finds the total portfolio value:
where C1, C2, and C3 are the current values (in USD) of Coin 1, Coin 2, and Coin 3.
For each coin i with target percentage pi, the desired target value in dollars is:
The adjustment amount Ai tells you how much to buy or sell for coin i:
Interpreting the result is straightforward:
- If Ai is positive, your current holding is below target and you would buy that dollar amount of the coin (or shift that amount from another coin).
- If Ai is negative, you are above target and would typically sell that much (or reallocate the excess into other coins).
- If Ai is close to zero, you are already very near your target allocation for that coin.
Step-by-Step: Using the Calculator
- Map the coins. Decide which real coins you will treat as Coin 1, Coin 2, and Coin 3. For example, Coin 1 = BTC, Coin 2 = ETH, Coin 3 = SOL.
- Find current USD values. For each coin, multiply the amount you own by its latest price in USD, or read the value directly from your exchange account.
- Enter the current values. In the fields for “Current Value Coin 1 (USD)”, “Current Value Coin 2 (USD)”, and “Current Value Coin 3 (USD)”, type the current dollar value of each position.
- Set target percentages. Choose the percentage weight you want for each coin. The three target percentages should ideally add up to 100%.
- Run the calculation. Use the rebalance button to compute the total portfolio value, target dollar values, and buy/sell amounts for each coin.
- Decide on trades. Use the suggested buy/sell amounts as an informational guide while you plan or review rebalancing trades on your preferred exchange.
Worked Example
Suppose your current portfolio looks like this:
- Coin 1: $600
- Coin 2: $300
- Coin 3: $100
You decide on the following target allocation:
- Coin 1: 50%
- Coin 2: 30%
- Coin 3: 20%
First, calculate the total portfolio value:
T = 600 + 300 + 100 = 1,000 USD
Next, compute the target dollar amount for each coin:
- Coin 1 target value = 1,000 × 50% = $500
- Coin 2 target value = 1,000 × 30% = $300
- Coin 3 target value = 1,000 × 20% = $200
The adjustment for each coin is target value minus current value:
- Coin 1 adjustment = 500 − 600 = −100 (sell $100)
- Coin 2 adjustment = 300 − 300 = 0 (no change)
- Coin 3 adjustment = 200 − 100 = +100 (buy $100)
This information can be summarized in a table, similar to how the calculator may present your own results:
| Coin | Current Value (USD) | Target % | Target Value (USD) | Buy / Sell (USD) |
|---|---|---|---|---|
| Coin 1 | $600 | 50% | $500 | Sell $100 |
| Coin 2 | $300 | 30% | $300 | No change |
| Coin 3 | $100 | 20% | $200 | Buy $100 |
After these trades, your portfolio would be closer to the desired 50/30/20 split based on the same total value of $1,000 (before considering fees or market movement during execution).
Interpreting Your Results
When you run the calculator with your own numbers, focus on the following points:
- Sign of the adjustment. A positive adjustment suggests buying or adding exposure to that coin; a negative adjustment suggests selling or trimming the position.
- Relative size of trades. Large adjustments compared to your portfolio size may indicate that your current allocation has drifted significantly away from your targets.
- Realistic trade sizes. Very small suggested trades may not be worth executing after considering exchange fees and the time involved.
- Impact on risk profile. Moving toward a higher percentage in a volatile coin will generally increase overall portfolio risk, while shifting toward a less volatile coin or stablecoin will generally reduce it.
You can also use the calculator iteratively: test different target percentages to see how they change the suggested buy/sell amounts and get a feel for how sensitive your portfolio is to allocation choices.
Typical Rebalancing Approaches
Investors use different strategies for deciding when to rebalance, and this calculator can support several of them. A few common approaches include:
- Time-based rebalancing. You rebalance on a regular schedule, such as monthly, quarterly, or annually. Each time, you enter your updated current values and your chosen targets, then decide if the suggested trades are worth executing.
- Threshold-based rebalancing. You only consider a rebalance when an asset’s allocation drifts beyond a set threshold, such as 5 percentage points away from target. You can check your portfolio with this calculator periodically and act when the deviations are large enough.
- Hybrid approaches. Some people combine both methods: for example, checking monthly but only rebalancing if a coin is more than 10% off its target weight.
None of these approaches is universally “best”; the right choice depends on your risk tolerance, trading costs, tax situation, and how actively you want to manage your crypto holdings.
Comparison: Current vs Target Allocation
Conceptually, the calculator is comparing your current allocation to your target allocation and then translating the difference into dollar trades. The following table summarizes the comparison:
| Item | Current Allocation | Target Allocation |
|---|---|---|
| Basis of calculation | Actual current values of each coin in USD. | Desired percentage weights you choose for each coin. |
| What it represents | How your portfolio is distributed right now. | How you want your portfolio to be distributed. |
| Use in the formula | Summed to get total T and compared against targets. | Multiplied by T to obtain target dollar values. |
| Risk profile | Reflects current exposure to each coin’s volatility. | Represents your intended risk and return balance. |
| Action implied | No action by itself; it is the starting point. | Drives the buy/sell amounts needed for rebalancing. |
Assumptions and Limitations
This calculator is intentionally simple and makes several assumptions so that the math is easy to understand. It is important to be aware of these limitations when you interpret the results:
- No trading fees or spreads. The tool does not include exchange fees, network fees, bid–ask spreads, or other transaction costs. In real markets, the price you pay or receive is usually slightly worse than the mid-market price, and these costs can be significant, especially for small trades or illiquid coins.
- No slippage or market impact. The calculations assume you can trade at a single, fixed price. For large trades or highly volatile markets, the actual execution price can move while your order is being filled.
- No tax considerations. Selling crypto can trigger taxable events depending on your jurisdiction. The calculator does not estimate taxes and should not be used to plan tax outcomes.
- Fixed number of assets. The current setup only handles three coins. If you hold a more diversified portfolio, you would need to extend the method or use other tools to include additional assets.
- Static snapshot. All calculations are based on a single point in time using the current values you enter. Crypto prices can move quickly, so results may become outdated soon after you calculate them.
- Percentage input quality. The logic assumes that your target percentages are sensible and typically add up to 100%. If they do not, the implied portfolio may not match what you intend.
- No prediction of future performance. The tool does not forecast returns, volatility, or risk. It only rearranges your current portfolio according to the percentages you choose.
Important Disclaimer
The results from this crypto portfolio rebalancing calculator are for general information and educational purposes only. They are based solely on the numbers you enter and do not take into account your full financial situation, objectives, or risk tolerance.
Nothing on this page should be interpreted as financial, investment, tax, or legal advice, or as a recommendation to buy, sell, or hold any cryptocurrency. Always do your own research and consider seeking guidance from a qualified professional before making investment decisions. Crypto assets are highly volatile and you can lose some or all of the money you invest.