Portfolio rebalancing calculator
How much to buy or sell to get back to your target mix, or where to put new money without selling.
- ๐บ๐ธ US federal & state rules
Trades to make
Buy $8,000.00, sell $8,000.00
Portfolio of $100,000.00 after rebalancing
- Current total
- $100,000.00
- New money
- $0.00
This is an example. Enter your numbers above and press the button to see your own result.
What to buy or sell
| US stocks (now 68%, target 60%) | Sell $8,000.00 |
|---|---|
| International stocks (now 17%, target 20%) | Buy $3,000.00 |
| Bonds (now 15%, target 20%) | Buy $5,000.00 |
After rebalancing
| US stocks | $60,000.00 (60%) |
|---|---|
| International stocks | $20,000.00 (20%) |
| Bonds | $20,000.00 (20%) |
- Selling in a taxable account can trigger capital gains tax. Rebalancing inside an IRA or 401(k), or with new deposits, avoids that.
What to do next
How it works
In buy and sell mode, each holding's target is (current total + new money) ร target percent. The trade is the target minus what you hold now.
In new money only mode, the calculator never sells. It works out which holdings are below target and splits the deposit among them so they end up in the right proportions. If the deposit is not enough, it gets as close as it can.
Things to keep in mind
Targets must add up to 100%. Fund minimums, whole shares and trading fees can leave small differences.
Frequently asked questions
How do I rebalance a portfolio?
Multiply the total value by each target percent, then compare with what you hold now. A $100,000 portfolio at 70/30 that should be 60/40 needs $10,000 moved from stocks to bonds.
Can I rebalance without selling?
Yes, by putting new money into whatever is below target. With $70,000 stocks, $30,000 bonds and $20,000 to add, buying $2,000 of stocks and $18,000 of bonds lands exactly on 60/40.
How often should I rebalance?
Common rules are once a year or whenever a holding drifts more than about 5 percentage points from target. Rebalancing more often adds trades without much benefit.
Does rebalancing cause taxes?
Selling at a gain in a taxable account does. Rebalancing inside an IRA or 401(k) has no tax effect, and using new deposits avoids sales altogether.