Stock Portfolio Rebalance Calculator
Get a per-holding buy and sell plan that pulls your portfolio back to its target allocations. Includes a 5% tolerance band, optional new cash, a tax-aware buy-only mode, and a count of taxable sell events.
Portfolio Rebalance Examples
Target values for a $100,000 portfolio with a 60/30/10 allocation.
| Holding | Current Value | Target Allocation | Target Value | Buy or Sell |
|---|---|---|---|---|
| Stock fund | $70,000.00 | 60% | $60,000.00 | -$10,000.00 |
| Bond fund | $20,000.00 | 30% | $30,000.00 | $10,000.00 |
| Cash | $10,000.00 | 10% | $10,000.00 | $0.00 |
Frequently Asked Questions about the Stock Portfolio Rebalance Calculator
Why rebalance a portfolio at all?
Rebalancing restores the target allocation you chose for your risk tolerance and time horizon. When one holding outperforms, the portfolio can drift into a different risk profile. You can rebalance by selling overweight holdings, buying underweight holdings, or directing new contributions toward the shortfalls. The goal is allocation control, not a prediction about which asset will perform best next.
Where does the 5% tolerance band come from?
The calculator uses a 5-percentage-point drift threshold as a planning convention, not as an optimal rule for every portfolio. A narrower band restores targets sooner but can create more trades, spreads, and taxable gains. A wider band trades less but permits more allocation drift. Choose a threshold that fits the account type, transaction costs, tax impact, and how closely you need to track the target.
How do I rebalance without triggering a tax bill?
Direct new contributions (paychecks, dividends, RSU sales, year-end bonuses) into whichever holdings are most underweight, instead of selling overweight positions. This calculator's buy-only mode does exactly that: it skips every sell and spreads the new cash across the underweight holdings, proportional to their dollar shortfall. In a 401(k), IRA, or HSA you can rebalance freely with no tax cost. In a taxable brokerage account, buy-only plus an annual review usually keeps drift inside the band without realizing gains.
Should I rebalance on a calendar or on a threshold?
Calendar rebalancing checks the portfolio on a fixed schedule. Threshold rebalancing acts only after an allocation drifts by a chosen amount. A calendar is simpler to maintain, while a threshold responds to market moves but requires monitoring. A hybrid approach can review on a schedule and trade only when drift exceeds the selected band.
Does rebalancing actually improve returns?
Rebalancing does not guarantee higher returns or a better risk-adjusted result. It restores your target allocation, so its effect depends on which assets outperform, when trades occur, taxes, fees, and the comparison period. A portfolio allowed to drift toward the best-performing asset can earn more while also taking more concentration risk. Judge a rebalancing policy by how well it maintains the risk profile you intended, not by an assumed return bonus.
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