Portfolio Rebalancing Calculator

How to Use This Rebalancing Calculator

1. Enter Your Assets: List all the assets in your portfolio (e.g., stocks, bonds, crypto) and their current market value.
2. Set Targets: Input your desired target allocation percentage for each asset. The total must equal 100%.
3. Add Contributions (Optional): If you plan to add new money, enter the amount in the "New Contribution" field. This helps you rebalance by buying underweight assets rather than selling winners.
4. Review Actions: The calculator will instantly show you exactly how much of each asset to buy or sell to reach your target allocation.

What is Portfolio Rebalancing?

Portfolio rebalancing is the process of realigning the weightings of a portfolio of assets. It involves periodically buying or selling assets to maintain your original or desired level of asset allocation and risk.

Over time, some investments may outperform others. For example, if your stock holdings grow faster than your bonds, your portfolio may become riskier than you intended. Rebalancing brings it back to your target state.

Why Rebalancing Matters

• Risk Control: It ensures your portfolio doesn't drift into a riskier allocation than you're comfortable with.
• "Buy Low, Sell High": Rebalancing naturally forces you to sell assets that have appreciated and buy those that have underperformed, which is the essence of disciplined investing.
• Discipline: It removes emotion from investing decisions, relying on a mathematical framework instead.

Frequency of Rebalancing

There is no single "correct" frequency. Some investors rebalance annually, others quarterly, and some only when their allocation drifts by a certain percentage (e.g., 5%). The key is consistency.