Portfolio Rebalancing Calculator
Compare current stock, bond, and cash allocations with your target mix, then estimate buy and sell amounts needed to rebalance.
Portfolio Inputs
Direct answer: rebalancing trade amount = target dollars minus current dollars. Positive values are estimated buys; negative values are estimated sells.
Current and Target Allocation
Stocks
Bonds
Cash
Rebalancing Summary
Total buys
$15,000
Total sells
$15,000
Largest drift
10 pts
Band Check
At least one asset class is outside the selected rebalancing band.
Educational estimate only. Review taxes, trading costs, fund restrictions, account location, and your investment policy before placing trades.
Rebalancing Trade Table
| Asset | Current % | Target % | Current dollars | Target dollars | Estimated trade | Drift |
|---|---|---|---|---|---|---|
| Stocks | 70% | 60% | $105,000 | $90,000 | Sell $15,000 | 10 pts |
| Bonds | 20% | 30% | $30,000 | $45,000 | Buy $15,000 | -10 pts |
| Cash | 10% | 10% | $15,000 | $15,000 | No trade | 0 pts |
Formula Guide
| Step | Formula | Use for | Main caution |
|---|---|---|---|
| Current dollars | portfolio value x current allocation percentage | Estimate current stock, bond, and cash dollar amounts | Real accounts may include more asset classes, funds, and tax lots |
| Target dollars | portfolio value x target allocation percentage | Translate your allocation policy into dollar targets | Targets should come from your risk tolerance and time horizon, not from the calculator |
| Trade amount | target dollars - current dollars | Show estimated buy or sell amounts needed to rebalance | Taxes, bid-ask spreads, fund minimums, and account restrictions can change actual trades |
| Drift check | current percentage - target percentage | Flag asset classes outside a chosen rebalancing band | A small drift may not justify trading costs or tax impact |
Method and Worked Example
This calculator multiplies total portfolio value by current and target allocation percentages. The difference between target dollars and current dollars is the estimated trade needed to move back toward target.
Worked example: on a $150,000 portfolio, moving stocks from 70% to 60% means stocks move from $105,000 to $90,000. The estimated stock trade is sell $15,000, before taxes, fees, and account-specific constraints.
Investor Education Sources
FAQ
What is portfolio rebalancing?
Portfolio rebalancing means adjusting holdings back toward a target asset allocation after market moves, contributions, withdrawals, or risk changes cause the portfolio to drift.
How do you calculate a rebalancing trade?
For each asset class, multiply total portfolio value by the target percentage, then subtract the current dollar value. A positive result is an estimated buy amount and a negative result is an estimated sell amount.
How often should I rebalance a portfolio?
Many investors review annually, semiannually, quarterly, or when an allocation drifts beyond a chosen band such as 5 percentage points. The right schedule depends on taxes, costs, account type, and investment policy.
Should I rebalance in taxable accounts?
Rebalancing taxable accounts can trigger capital gains, wash sale issues, transaction costs, and tax-lot decisions. Consider using new contributions, dividends, or tax-advantaged accounts before selling appreciated positions.
Is this calculator investment advice?
No. This page is an educational worksheet. It does not recommend a specific allocation, security, or trade.
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About This Calculator
Calculate portfolio rebalancing trades from current and target stock, bond, and cash allocations. Educational allocation worksheet only.
Frequently Asked Questions
What is portfolio rebalancing?
Portfolio rebalancing means adjusting holdings back toward a target asset allocation after market moves, contributions, withdrawals, or risk changes cause the portfolio to drift.
How do you calculate a rebalancing trade?
For each asset class, multiply total portfolio value by the target percentage, then subtract the current dollar value. A positive result is an estimated buy amount and a negative result is an estimated sell amount.
How often should I rebalance a portfolio?
Many investors review annually, semiannually, quarterly, or when an allocation drifts beyond a chosen band such as 5 percentage points. The right schedule depends on taxes, costs, account type, and investment policy.
Should I rebalance in taxable accounts?
Rebalancing taxable accounts can trigger capital gains, wash sale issues, transaction costs, and tax-lot decisions. Consider using new contributions, dividends, or tax-advantaged accounts before selling appreciated positions.
Is this calculator investment advice?
No. This page is an educational worksheet. It does not recommend a specific allocation, security, or trade.
The SuperCalc Editorial Team maintains calculator interfaces, formula notes, examples, and supporting explanations. Methods, assumptions, source links, and review depth vary by calculator and are documented on the relevant page where available.