📊 Portfolio Rebalancing Calculator
Asset Allocation
Extra Cash (Optional)
About Portfolio Rebalancing
Portfolio rebalancing restores your asset allocation to target weights when market movements cause drift. Regular rebalancing controls risk and maintains investment discipline.
Common Strategies
- •Calendar rebalancing: quarterly/semi-annual/annual
- •Threshold rebalancing: when an asset deviates >5%
- •Cash flow rebalancing: use new contributions to buy underweight assets
Considerations
- •Consider transaction costs (commissions, taxes)
- •Rebalance in retirement accounts to avoid tax impact
- •Don't overtrade — moderate drift is normal
What is portfolio rebalancing?
Restoring asset allocations to target weights when markets cause drift. If stocks grow from 60% to 70%, you sell stocks and buy bonds to restore 60/40.
How often should I rebalance?
Common approaches: calendar (annual/semi-annual), threshold (deviation >5%), or hybrid. Calendar rebalancing is simplest.