Free Portfolio Rebalance Calculator

Determine how to rebalance your investment portfolio back to its target asset allocation.

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Stocks: Buy/Sell

-$10,000

Bonds: Buy/Sell$5,000
Cash: Add/Remove$5,000
Total Rebalance Volume$20,000

Stocks: Buy/Sell vs Total Portfolio Value

Portfolio Rebalancing

Rebalancing restores your portfolio to its target allocation after market movements cause drift.

Why Rebalance?

  • Maintains your intended risk level
  • Forces you to sell high and buy low
  • Prevents overconcentration in one asset class
  • How to Rebalance

    Trade Amount = Portfolio Value x (Target% - Current%) / 100

    Positive values mean buy; negative values mean sell.

    When to Rebalance

  • Calendar-based: quarterly, semi-annually, or annually
  • Threshold-based: when any allocation drifts 5%+ from target
  • Example Calculation

    $100,000 portfolio: 70% stocks, 25% bonds, 5% cash. Target: 60/30/10.

    1. 01Stocks: sell $100,000 x (60% - 70%) = -$10,000
    2. 02Bonds: buy $100,000 x (30% - 25%) = +$5,000
    3. 03Cash: add $100,000 x (10% - 5%) = +$5,000
    4. 04Total volume = $10,000 + $5,000 + $5,000 = $20,000

    Frequently Asked Questions

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