Free Portfolio Rebalancing Calculator - Optimize Your Allocation
Analyze your portfolio allocation, identify drift, and get personalized rebalancing recommendations
Formula & Methodology
Rebalancing forces you to sell assets that have become overweight (securing gains) and buy assets that are underweight (buying low) to return your portfolio to its intended risk profile.
- Drift % = Current % - Target %
- Sell/Buy Amount = |Drift %| × Total Portfolio Value
Worked Example
Using the Portfolio Rebalancing Calculator: apply the formula above to your input values. For instance, Drift % = Current % - Target %, then Sell/Buy Amount = |Drift %| × Total Portfolio Value. The tool performs each step instantly and shows the result.
Frequently Asked Questions
What is portfolio rebalancing?
It is realigning your holdings back to your target allocation after market moves push them out of balance.
How often should I rebalance?
Common approaches rebalance annually or when an asset drifts more than about 5% from its target weight.
Why is rebalancing important?
It controls risk by trimming what has grown too large and buying what has lagged, enforcing a buy-low, sell-high discipline.