Rebalancing Calculator
Enter what you own and your target mix — get the exact buy/sell orders, or invest new money without selling anything.
Your holdings
Ticker / nameCurrent valueTarget %
Rebalancing mode
$
At least one position breached the 5/25 band — a rebalance is warranted.
Your rebalancing plan
| Asset | Now | Target | Action |
|---|---|---|---|
| VOO | $14,50058.0% | 60% | BUY $500 |
| VXUS | $4,20016.8% | 20% | BUY $800 |
| BND5/25 | $6,30025.2% | 20% | SELL $1,300 |
Total buys$1,300
Total sells$1,300
Largest drift5.2 pp
Methodology
Trade mode computes target values as (portfolio + new money) × target weight and shows the exact difference to trade. New-money mode fills the largest deficits first without selling (cash-flow rebalancing); if the contribution can't close every gap, it is split proportionally to each gap. The 5/25 drift band follows Larry Swedroe's rule of thumb. Taxes and trading costs are not included.
💬 Frequently Asked Questions
Two common triggers: on a calendar (once or twice a year), or when drift breaches a band. Larry Swedroe's 5/25 rule says rebalance when an asset drifts 5 percentage points from target, or 25% of its own target weight — whichever comes first. This calculator flags positions that breach the band.
Instead of selling winners (which can realize taxable capital gains), you direct new contributions toward whatever is most underweight. Over time your portfolio drifts back to target without a single sale. The 'new money only' mode computes exactly how to split a contribution this way.
Its main job is controlling risk, not boosting returns: it keeps your equity/bond mix at the level you chose. Between assets with similar long-run returns it can add a small 'rebalancing bonus'; between assets with very different returns (stocks vs bonds) it usually costs a little return in exchange for much steadier risk.
No. Being within 1-2 percentage points is fine — transaction costs, taxes, and spreads make precision expensive. That's why band-based rules like 5/25 exist: they act only when drift is large enough to matter.