Portfolio Rebalancing Calculator
Enter your current holdings and target allocations to instantly see what to buy, sell, or hold. Supports up to 8 assets and optional new money injection.
Target total: 0.0% (must equal 100%)
How Portfolio Rebalancing Works
Over time, assets with higher returns will grow to represent a larger share of your portfolio than intended. A portfolio targeting 60% stocks / 40% bonds might drift to 70% / 30% after a strong equity bull market — exposing you to more risk than you chose.
Rebalancing corrects this by selling the overweight asset and buying the underweight one. This enforces a systematic buy-low, sell-high discipline — you sell what has risen most and buy what has lagged.
Worked Example
Portfolio: $85,000 total. Target: 60% US Stocks, 20% International, 15% Bonds, 5% REITs. Current: US Stocks $60K (70.6%), International $15K (17.6%), Bonds $8K (9.4%), REITs $2K (2.4%). At a 5% threshold:
- US Stocks: 70.6% vs 60% target → Sell ~$9,000 (drift = +10.6%)
- International: 17.6% vs 20% target → within threshold (drift = −2.4%) → Hold
- Bonds: 9.4% vs 15% target → Buy ~$4,750 (drift = −5.6%)
- REITs: 2.4% vs 5% target → Buy ~$2,250 (drift = −2.6%, but under 5%)
Common Portfolio Allocations
| Strategy | Stocks | Bonds | Alternatives | Who It's For |
|---|---|---|---|---|
| Aggressive Growth (100/0) | 100% | 0% | 0% | Young investors, 30+ yr horizon |
| Growth (80/20) | 80% | 20% | 0% | 10–20 yr horizon |
| Moderate (60/40) | 60% | 40% | 0% | Classic balanced portfolio |
| Conservative (40/60) | 40% | 60% | 0% | Near retirement |
| All-Weather (Ray Dalio) | 30% | 55% | 15% | Low-volatility all seasons |
| Three-Fund Portfolio | 60% US / 20% Intl | 20% | 0% | Passive Bogleheads |
Frequently Asked Questions
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This calculator is for educational purposes only and does not constitute financial advice.