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Portfolio Rebalancing Calculator

See how much to buy or sell to bring your stock/bond portfolio back to its target allocation.

How it is calculated

The tool works out what the stock side should be worth if the total were split at your target, then shows the gap.

total = stocks + bonds
target stocks = total × target% ÷ 100
target bonds = total − target stocks
move to stocks = target stocks − current stocks

Stocks and bonds are current market values in dollars; the target is the stock share in percent (0 to 100), and bonds get the rest. A positive "move to stocks" means buy stocks, a negative one means sell. "Move to bonds" is the same number with the opposite sign, so the total never changes. Values cannot be negative and the target must be between 0 and 100, otherwise nothing is shown. The tool ignores trading costs, taxes and rounding to whole shares, and covers only a two-asset mix, so cash or other holdings have to be left out or added to one side by you.

Worked example

Your portfolio holds $70,000 of stocks and $30,000 of bonds, so the total is $100,000 and stocks make up 70%. Your target is 60% stocks. Target stocks = 100,000 × 60 ÷ 100 = $60,000, so target bonds = $40,000. Move to stocks = 60,000 − 70,000 = -$10,000.00, meaning sell $10,000 of stocks and move $10,000.00 into bonds. After rebalancing you hold $60,000.00 in stocks and $40,000.00 in bonds, exactly 60/40.

Try this example →

Common mistakes

  • Reading a negative "move to stocks" as a loss. It only means you hold too many stocks and should sell that amount; the matching "move to bonds" is positive.
  • Entering the target as a bond percentage. The target field is the stock share; a 40% bond target means entering 60.
  • Including cash, real estate or other holdings in the stock or bond field without thinking. The tool only knows two buckets, so the total and every trade depend on what you put in.
  • Ignoring taxes and fees. In a taxable account, selling the overweight asset can trigger capital gains tax that the tool does not subtract.
  • Expecting the result to be a trade order in shares. It gives dollar amounts; you still have to convert them using current prices.

About this calculator

Portfolio rebalancing is the practice of periodically buying and selling assets to bring your portfolio back to its target asset allocation — most commonly a target stock/bond mix like 60/40 or 80/20 — after market movements have caused it to drift. Because stocks and bonds grow at different rates, a portfolio that starts at 60% stocks can drift to 70% or higher after a strong stock rally, quietly taking on more risk than originally intended.

To rebalance, you enter your current stock and bond dollar values along with your target stock percentage, and the calculation determines exactly how much needs to move from the overweight asset class to the underweight one to restore the target mix — either by selling the overweight asset and buying the underweight one, or by directing new contributions toward whichever side is lagging.

Individual investors, robo-advisors, and financial advisors typically rebalance on a set schedule (annually or quarterly) or when an allocation drifts past a threshold band (often 5 percentage points), since disciplined rebalancing tends to enforce a 'buy low, sell high' habit and keeps portfolio risk aligned with an investor's actual goals and time horizon.

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