Portfolio Rebalancing Calculator
List each asset class with its current value and target percentage. The calculator totals the portfolio, compares each holding to its ideal value, and recommends buy or sell amounts to restore alignment.
| Asset | Current ($) | Target ($) | Action |
|---|
How rebalancing preserves your risk profile
Market moves can push your portfolio away from its intended mix. Selling a portion of overweight assets and buying more of the underweight ones realigns exposure to match your goals. The calculator uses each asset’s target percentage to compute the ideal dollar value, then highlights the trade required to close the gap.
Formula for target holdings
The target amount for asset is
, where is the total portfolio value and is the target percentage. The recommended trade is simply , with positive values indicating buys and negative values indicating sells.
Strategy comparison
The sample table illustrates how tolerance bands influence rebalancing decisions for a classic 60/30/10 portfolio.
| Trigger | Stocks | Bonds | Cash |
|---|---|---|---|
| 5% drift band | Rebalance if outside 55–65% | Rebalance if outside 25–35% | Rebalance if outside 5–15% |
| Contribution only | Direct new funds to underweight assets | Use bond interest to top up equities | Maintain emergency buffer |
| Quarterly review | Check alignment every three months | Monitor duration risk alongside allocation | Set aside cash for tax payments |
Related planning tools
Coordinate your rebalancing plan with the Asset Allocation Calculator to confirm long-term targets. Before selling in taxable accounts, estimate the impact using the Capital Gains Tax Calculator. For retirement portfolios, sanity-check withdrawal rates with the Safe Withdrawal Rate Calculator to ensure your asset mix supports ongoing distributions.