$100k, current 70/30, target 60/40
- Current stocks = $70k, target $60k → Sell $10k
- Current bonds = $30k, target $40k → Buy $10k
finance calculator
Portfolio Rebalancing Calculator
Calculate trades needed to move from current weights to target weights given total portfolio value.
Results
- Current stocks
- $60,000
- Current bonds
- $40,000
- Target stocks
- $60,000
- Target bonds
- $40,000
- Buy/(sell) stocks
- $0
- Buy/(sell) bonds
- $0
How to use this calculator
- Enter total portfolio value.
- Enter current stock/bond percentages.
- Enter target stock/bond percentages.
- Review buy/sell amounts for each to rebalance.
Inputs explained
- Percentages
- Ensure current and target allocations sum to 100%.
How it works
Current value × current % gives current allocation amounts. Target value × target % gives target amounts. Trades = target − current for each asset.
Formula
Current value × current %; Target value × target %; Trade = Target − Current
When to use it
- Planning trades to rebalance to target asset allocation.
- Checking drift and required moves after market changes.
Tips & cautions
- Set percentages that sum to 100%. Adjust for additional asset classes separately if needed.
- Consider tax/location and transaction costs before trading.
- Small drifts may not need trades; set bands if you follow threshold rebalancing.
- Simplified two-asset view; does not handle multiple asset classes or tax implications.
- Assumes immediate trades at current values; ignores transaction costs.
Worked examples
$250k, current 55/45, target 60/40
- Current stocks $137.5k, target $150k → Buy $12.5k
- Current bonds $112.5k, target $100k → Sell $12.5k
Deep dive
Calculate rebalancing trades by entering portfolio value, current weights, and target weights to see buy/sell amounts for stocks and bonds.
Use it to plan allocation adjustments after market moves.
FAQs
- Do percentages need to sum to 100%?
- Yes for this two-asset view. Adjust inputs accordingly.
- Can I include other assets?
- Not here. Use a weighted approach or expand inputs for more asset classes.
- Are taxes/fees included?
- No. Consider tax impact and fees before trading.
- Is this investment advice?
- No. It’s a planning tool; consult a financial professional for advice.
- Can I set tolerance bands?
- Not in this simple calculator; adjust manually.
Related calculators
finance
IPO Return Calculator
Calculate gain per share, percent return, and total return from IPO issue price to current price.
finance
ROI Calculator
Calculate return on investment (ROI) plus annualized ROI for any holding period.
finance
Net Present Value (NPV) Calculator
Discount projected cash flows to today’s dollars and see whether a project creates value.
Simplified rebalancing aid. Does not include taxes, fees, or multi-asset complexity. Consult a financial professional before trading.