Portfolio rebalancing restores your target asset allocation after market movements cause drift. When stocks outperform, they grow as a share of your portfolio — increasing risk beyond your intended level. This calculator shows exactly how much to buy or sell to get back on target.
Current Portfolio
Target percentages must total 100%.
Rebalancing Trades
| Asset | Current $ | Current % | Target % | Target $ | Action |
|---|
How to Use the Portfolio Rebalancing Calculator
This portfolio rebalancing calculator takes the guesswork out of restoring your target allocation. Instead of manually estimating trade sizes, enter your current holdings and targets and get exact buy/sell amounts.
Step 1: Enter Asset Names and Current Values
For each asset class in your portfolio (e.g., "US Stocks," "International Stocks," "Bonds," "REITs"), enter the asset name and current dollar value. You can add up to 6 assets using the "+ Add Asset" button. The more specific you are about names, the more useful the rebalancing trades table will be.
Step 2: Enter Target Percentages
For each asset, enter your target allocation percentage. Target percentages must sum to exactly 100%. A classic 60/40 portfolio would have 60% stocks and 40% bonds. If you have sub-asset classes, ensure they add up correctly across all rows.
Step 3: Review the Rebalancing Trades
The calculator shows each asset's current percentage, target percentage, and the dollar amount to buy (positive) or sell (negative) to reach target. Assets shown with "Buy" need to increase; assets shown with "Sell" need to decrease. The total buys and sells should be roughly equal, netting to zero if you are rebalancing within the same total portfolio value.
Tax Considerations
In a taxable account, selling appreciated assets triggers capital gains taxes. Consider whether the cost of rebalancing (taxes) outweighs the benefit of restored allocation. A common approach: in taxable accounts, direct new contributions to underweight assets first; only sell to rebalance if drift exceeds 5–10% of target. In tax-advantaged accounts (IRA, 401k), rebalance freely without tax consequences.
FAQ
Is this portfolio rebalancing calculator free?
Yes, completely free with no signup required. All calculations run in your browser.
What is portfolio rebalancing?
Portfolio rebalancing is the process of buying and selling assets to restore your intended target allocation percentages. Over time, assets that grow faster than others increase as a percentage of your portfolio — taking on more risk than you intended. Rebalancing sells the outperformers and buys underperformers to restore your original risk profile.
How often should I rebalance my portfolio?
Common approaches are: time-based (annually, semi-annually), threshold-based (when any asset drifts more than 5% from target), or a combination. Research suggests threshold-based rebalancing (e.g., rebalance when any asset is 5% off target) is more tax-efficient than calendar-based rebalancing because it avoids unnecessary taxable events in years with minimal drift.
Should I rebalance by selling or by directing new contributions?
In a tax-advantaged account (IRA, 401k), selling to rebalance has no immediate tax consequences. In a taxable account, direct new contributions to underweight assets first — this avoids triggering capital gains taxes. Only sell to rebalance in taxable accounts when the drift is significant enough to justify the tax cost, or when you have losses to harvest against the gains.
What is a good target allocation?
A classic starting point is age-based: 100 minus your age in stocks, the rest in bonds. A 30-year-old might target 70% stocks / 30% bonds. However, modern guidance suggests 110 or 120 minus age given longer lifespans. Common portfolio types include 60/40 (balanced), 80/20 (growth-oriented), and 100% equities for long-term investors comfortable with volatility.