Portfolio Rebalancing Calculator
Calculate how to rebalance your investment portfolio to target allocations
About this calculator
A Portfolio Rebalancing Calculator helps investors maintain their desired asset allocation by determining exactly how much to buy or sell of each investment. Over time, market movements cause your portfolio to drift from target percentages, potentially increasing risk or reducing returns. This calculator shows you the precise dollar amounts needed to rebalance back to your original allocation, helping you maintain optimal diversification, manage risk effectively, and stick to your long-term investment strategy without guesswork.
How to use
Enter your current portfolio values for each asset class and your target allocation percentages. The calculator will show how much you need to buy or sell of each asset to reach your desired allocation. Review the recommended trades and execute them through your brokerage account to rebalance your portfolio.
Frequently asked questions
How often should I rebalance my portfolio?
Most experts recommend rebalancing quarterly or semi-annually, or when any asset class deviates more than 5% from target allocation.
What are the costs of rebalancing?
Rebalancing may incur trading fees and tax consequences from selling appreciated assets. Consider tax-advantaged accounts to minimize tax impact.
Should I rebalance during market volatility?
Rebalancing during volatility can be beneficial as it forces you to buy low and sell high, maintaining discipline during emotional market periods.