How to Rebalance a Portfolio to Target Weights
Compare current and target asset weights, then calculate the buy and sell amounts required to rebalance a portfolio.
The concept in plain English
A portfolio rebalancing calculator compares each holding's current value with its target share of total portfolio value. The difference becomes a buy or sell amount needed to restore the planned allocation.
Open Portfolio Rebalancing CalculatorCheck the portfolio boundary before trading
Targets must add to 100% of the holdings included in the calculation. Omitting cash or an account can make an apparently precise plan incomplete. The tool redistributes the current portfolio value; it does not optimize taxes or decide which allocation suits you. Consider whether new contributions can address an imbalance before selling. Convert value differences to executable quantities only after checking prices, transaction costs and account restrictions.
Restore a 60/40 allocation
A $10,000 portfolio holds $7,000 in stocks and $3,000 in bonds. Targets are 60% and 40%.
Stock target = $10,000 × 60% = $6,000. Bond target = $10,000 × 40% = $4,000.
The value-only plan sells $1,000 of stocks and buys $1,000 of bonds.
This ignores tax, fees and minimum order sizes. The 60/40 split is an example, not a recommended allocation.
Calculation method
Target value = total portfolio value × target percentage. Rebalance amount = target value − current value; positive values are buys and negative values are sells.
| Input | Purpose |
|---|---|
| Asset | Labels each portfolio holding. |
| Current value | Measures the existing allocation. |
| Target percentage | Defines the desired portfolio weight. |
| Portfolio total | Sets target currency values. |
Step-by-step workflow
- Enter every holding and its current market value.
- Assign target percentages and confirm they total 100 percent.
- Review buy and sell deltas, then account for taxes, fees and trading restrictions.
Practical benefits
- Converts allocation percentages into trade amounts.
- Reveals drift across the full portfolio.
- Supports periodic risk-control reviews.
Questions about Portfolio Rebalancing Calculator
How often should a portfolio be rebalanced?
Common approaches use a calendar or drift threshold, but the right frequency depends on costs, taxes, account type and investment policy.
Do target weights need to equal 100 percent?
Yes. A complete allocation should total 100 percent, including any target cash position.
Can contributions rebalance without selling?
Often yes. Directing new cash toward underweight assets can reduce drift while avoiding some taxable sales.
Examples are hypothetical and exclude costs unless stated. This is educational material, not individualized investment or tax advice. Read our methodology and risk disclosure.