Portfolio Rebalancing Calculator

Calculate exact trades needed to restore target asset allocation from current drift.

Financial Disclaimer

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.

Inputs

Total portfolio ($)

Current stock (%)

Target stock (%)

Current bond (%)

Target bond (%)

Tab to move between fields

Results

Stock trade ($)

-$15,000.00

Bond trade ($)$15,000.00

Cash trade ($)$0.00

Max drift (%)15%

Needs rebalancing (0/1)1

Total trade volume ($)$15,000.00

How to Use This Calculator

Enter your total portfolio value and your current stock and bond percentages.
Input your target stock and bond allocation percentages based on your investment policy.
Review Stock Trade and Bond Trade amounts — positive values mean buy, negative means sell.
Check Needs Rebalancing to see if your current drift exceeds the 5% threshold that typically warrants action.
Use Total Trade Volume to estimate transaction costs before executing rebalancing trades.

How the result changes with Current stock (%)

Current stock (%)	Stock trade ($)
10	$50,000.00
35	$25,000.00
65	-$5,000.00
90	-$30,000.00

What each input means

Total portfolio ($): Total portfolio value.
Current stock (%): Current percentage in stocks.
Target stock (%): Target percentage in stocks.
Current bond (%): Current percentage in bonds.
Target bond (%): Target percentage in bonds.

What each result means

Stock trade ($): Positive = buy, negative = sell.
Cash trade ($): Positive = add to cash, negative = deploy cash.
Max drift (%): Largest allocation deviation from target.
Needs rebalancing (0/1): 1 = drift exceeds 5% threshold.
Total trade volume ($): Total dollars moved in rebalancing.

How this is calculated

Worked example, using the default values

Identify Input Parameters
4 parameters
Total portfolio ($) = 100000, Current stock (%) = 75, Target stock (%) = 60, Current bond (%) = 15 = 5 input(s) provided
Calculate Stock trade
Stock trade
-15000 = $-15,000
Calculate Bond trade
Bond trade
15000 = $15,000
Calculate Cash trade
Cash trade
0 = $0