Portfolio Rebalancing Calculator 🔁

Calculate the **exact dollar amount** you need to buy or sell for each asset to bring your portfolio back to its **target asset allocation**.

Portfolio Asset Details

Choose 'Sell & Buy' to return to target using your existing portfolio value. Choose 'Cash Injection' to only buy with new cash/contributions, avoiding sales and potential tax events.

Asset Class
Current Value ($)
Target Weight (%)
Actual Weight (%)
Actions

How Portfolio Rebalancing Works

**Rebalancing** is the process of periodically buying or selling assets to maintain a target asset allocation. Over time, high-performing assets increase their portfolio share (become **overweight**), exposing the investor to more risk than intended. Rebalancing corrects this "drift."

The Calculation (Sell & Buy Method)

1. Target Value = Total Portfolio Value × Target Weight (%)
2. Difference = Target Value - Current Value
3. Action:
   - Positive Difference: Amount to BUY
   - Negative Difference: Amount to SELL

The **Cash Injection** method works differently: it calculates the amount of new cash needed to buy the *underweight* assets until they reach their target weight *without selling* the overweight assets.

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