Guide rebalancing with targets, cash, and drift controls. Compare live weights against your intended mix. Turn portfolio math into confident buy and sell decisions.
| Asset | Current Value | Target % | Current Weight % | Expected Action |
|---|---|---|---|---|
| US Stocks | 25,000 | 45 | 45.45 | Small sell or hold |
| International Stocks | 12,000 | 20 | 21.82 | Possible sell |
| Bonds | 10,000 | 20 | 18.18 | Possible buy |
| REITs | 5,000 | 10 | 9.09 | Possible buy |
| Cash | 3,000 | 5 | 5.45 | Hold |
Current Weight (%) = (Asset Current Value ÷ Total Current Portfolio Value) × 100
Investable Portfolio Value = Total Current Portfolio Value + Net Cash Flow
Target Asset Value = Investable Portfolio Value × (Target Allocation % ÷ 100)
Trade Value = Target Asset Value − Current Asset Value
Drift (%) = Current Weight % − Target Allocation %
Estimated Fee = Absolute Trade Value × Transaction Fee Rate
In threshold-only mode, trades are executed only when absolute drift meets or exceeds the selected threshold.
It compares current portfolio weights with your target allocation. Then it estimates how much to buy, sell, or hold so your portfolio moves closer to the desired mix.
A full allocation plan needs every percentage point assigned. If totals are below or above 100%, target values become inconsistent and trade suggestions lose accuracy.
Drift is the difference between an asset’s current weight and its intended target weight. Large market moves often cause drift and may justify rebalancing.
Threshold-only rebalancing ignores small deviations. It only triggers trades when drift reaches your selected limit, which can reduce turnover and trading friction.
Yes. New contributions can reduce unnecessary selling because incoming cash can be directed toward underweight assets before liquidating stronger positions.
No. This version estimates transaction fees only. Taxes vary by account type, holding period, and jurisdiction, so they should be reviewed separately.
Many investors review quarterly, semiannually, or annually. Others prefer threshold-based checks. The best schedule depends on strategy, costs, taxes, and discipline.
Yes, but interpret results carefully. Taxable accounts may create gains taxes, while retirement accounts often allow easier reallocation without immediate tax consequences.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.