Portfolio Rebalancing Calculator
Maintain your ideal asset allocation and manage investment risk effectively
Maintain Risk Levels
Ensure your portfolio stays within your predetermined risk tolerance
Automated Math
Instant calculations for buy/sell actions needed to reach your target allocation
Sell High, Buy Low
Automatically forces a disciplined approach to profit-taking and reinvesting
Related Keywords & Topics
Portfolio Rebalancing Calculator
Portfolio Assets
Rebalancing Plan
Total Portfolio Value
$10,000
Stocks
Current: 60.0% → Target: 50%
Sell $1,000
Target Value: $5,000
Bonds
Current: 40.0% → Target: 50%
Buy $1,000
Target Value: $5,000
Tip: Rebalancing helps you maintain your desired risk level by selling assets that have outgrown their target and buying those that have underperformed.
Mastering Portfolio Rebalancing
What is Portfolio Rebalancing?
Portfolio rebalancing is the process of realigning the weightings of a portfolio of assets. Rebalancing involves periodically buying or selling assets in a portfolio to maintain a default or target level of asset allocation and risk.
Why Rebalancing is Essential
Drift Control
Over time, high-performing assets become a larger portion of your portfolio, increasing your exposure to specific risks. Rebalancing brings you back to your plan.
Disciplined Investing
It takes the emotion out of investing by forcing you to "sell high" assets that have grown and "buy low" assets that have underperformed.
Rebalancing Strategies
1. Calendar-Based
Rebalancing on a specific date (e.g., quarterly or annually) regardless of how much the portfolio has drifted. Simple to execute.
2. Threshold-Based (Band Rebalancing)
Rebalancing only when an asset class drifts by more than a certain percentage (e.g., +/- 5%) from its target allocation.
Pro Tip: Tax Efficiency
In taxable accounts, consider rebalancing by directing new contributions toward underweighted assets rather than selling overweighted assets. This avoids triggering capital gains taxes while still moving your portfolio toward its target.