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Calculation Machine

Portfolio Rebalancing Calculator

Find trades needed to restore target asset allocation.

Reviewed by the Calculation Machine team · How we check our maths

Your values

ⓘ Live results

Results
Current allocation
70% stocks / 30% bonds
Target allocation
60% stocks / 40% bonds
Stock trade needed
Sell $10,000.00
Bond trade needed
Buy $10,000.00

Quick answer

Rebalancing means selling assets that have grown above their target weight and buying those below it, restoring your intended risk level.

The formula

Trade = (target % x total value) - current value

Worked example

Worked example

Using the values the calculator loads with.

Inputs

  • Current stock value70000 $
  • Current bond value30000 $
  • Target stock allocation60 %

Result

  • Current allocation70% stocks / 30% bonds
  • Target allocation60% stocks / 40% bonds
  • Stock trade neededSell $10,000.00
  • Bond trade neededBuy $10,000.00

How to use the Portfolio Rebalancing Calculator

  1. 1Enter your current stock and bond dollar values.
  2. 2Enter your target stock allocation percentage (bonds fill the remainder).
  3. 3Buy or sell the amounts shown to restore your target mix.

Frequently asked questions

How often should I rebalance?

Common approaches are annually, or whenever an asset class drifts more than 5 percentage points from target.

Does rebalancing trigger taxes?

In taxable accounts, selling can trigger capital gains — consider rebalancing within tax-advantaged accounts first.

About this calculator

Bringing a portfolio back to target

Over time, better-performing assets grow to a larger share of your portfolio and your risk drifts away from your plan. Rebalancing sells some of what has grown and buys what has lagged so the mix matches your targets again. The calculator shows exactly how much to buy or sell of each holding.

Many investors rebalance once a year or when any holding drifts more than about 5 percentage points from target.

Keeping costs down

  • Rebalance with new contributions first to avoid selling.
  • Do sales inside tax-advantaged accounts where possible.
  • Ignore tiny drifts; frequent trading adds costs without much benefit.

Sources

More questions

How often should I rebalance?

Annually or on a threshold such as 5% drift; both work well.

Does rebalancing increase returns?

Its main job is controlling risk, not boosting returns.