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This content was prepared with an AI-assisted workflow (AI-assisted editorial workflow) for information only, not investment or tax advice. Actual tax and investment outcomes depend on account type, product structure, current rules, and personal circumstances.
What is portfolio rebalancing?
Over time, market movements cause each position in your portfolio to drift away from its intended weight. Rebalancing restores your target allocation by selling assets that have grown beyond their target and buying those that have fallen below it. Regular rebalancing helps manage risk and maintain the strategy you chose when you first built your portfolio.
How to use this calculator
Enter each holding with its current market value and your desired target percentage. The calculator shows the trade required — positive values mean buy more, negative values mean sell. Totals update automatically when you change the currency toggle. You can add or remove rows to match your actual portfolio.
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Method and limits
Formula
target_value = total × target_weight ; trade = target_value − current_value ; drift = current_weight − target_weight
Worked example
With SCHD 5,000 / VYM 3,000 / VOO 2,000 USD (total 10,000) against 50/30/20 targets, target values are 5,000 / 3,000 / 2,000 — no trades needed. If SCHD rises to 6,000, the total becomes 11,000 and SCHD's 50% target is 5,500, so you sell 500 of SCHD and buy the rest to return drift to zero.
Assumptions
- All math runs in your browser; inputs are never sent to a server.
- Currency display uses a fixed exchange rate captured on the date below, not a live rate.
What is not included
- Taxes (dividend/capital gains), trading commissions, currency conversion costs
How to verify this yourself
- Put the same inputs into the formula above in a spreadsheet — you should reproduce these results exactly.
- If you find an error, tell us via the contact page and we will verify and correct it. Contact