Asset Rebalancer
Compare current allocations vs targets to generate optimal buy/sell strategies.
Try the calculator
Run the numbers yourself with the inputs below.
Overview
The Asset Rebalancer compares current allocations to a target mix and tells you how much to buy or sell in each bucket to restore the policy weights. It supports the common stocks-versus-bonds-or-cash split.
How it works
Trade Amount = (Total Portfolio × Target %) − Current ValueA positive number means you are underweight and should buy. A negative number means you are overweight and should sell. The total portfolio value is preserved across the operation.
Worked example
You hold 70,000 in stocks and 30,000 in bonds. Your policy target is 60% stocks and 40% bonds.
= Total is 100,000. Target stock value is 60,000, so sell 10,000 of stocks. Target bond value is 40,000, so buy 10,000 of bonds.
When to use it
- Run a quarterly or yearly portfolio review against a written policy
- Decide which bucket to direct new contributions toward
- Quantify drift after a sharp market move
Frequently asked questions
How often should I rebalance?
Common rules are calendar-based (annually or semi-annually) or threshold-based (when an asset class drifts more than 5 percentage points from its target). Both approaches work; consistency matters more than the exact rule.
Does rebalancing trigger taxes?
In a taxable account, selling appreciated assets can realize capital gains. Where possible, rebalance with new contributions or inside tax-advantaged accounts to limit tax friction.
Can I model more than two asset classes?
This calculator is limited to a stock and bond/cash split. For three or more sleeves, repeat the formula for each sleeve using the same total portfolio value.