Portfolio Rebalancing Calculator
Use this free portfolio rebalancing calculator to see how far your portfolio has drifted from your target mix, and what to buy or sell to bring it back. Enter what you hold in equity, debt and gold, your target mix, and any new money you can add. The calculator also shows a way to rebalance with new money only, without selling.
How this portfolio rebalancing calculator works
Over time, the assets that grow faster take up a larger share of your portfolio, and your mix drifts away from the plan. The calculator compares what you hold with your target and shows the difference for each asset. To rebalance fully, it shows how much to sell from the assets above target and how much to buy of those below. For example, a portfolio of ₹8 lakh in equity, ₹1.5 lakh in debt and ₹50,000 in gold is 80% equity, 15% debt and 5% gold. Against a target of 60% equity, 30% debt and 10% gold, a full rebalance means selling ₹2 lakh of equity and buying ₹1.5 lakh of debt and ₹50,000 of gold. The result is an illustration, not a recommendation.
Rebalancing with new money
Selling can bring tax and exit loads, so many investors prefer to rebalance with new money. If you enter an amount you can add, the calculator puts it first into the assets furthest below target and shows the mix you would reach without selling anything. If the new money is not enough to close the gap, it is shared in proportion to each shortfall.
The rebalancing band
Rebalancing too often adds cost, and rebalancing too rarely lets risk build up. Many investors choose a band, for example 5 percentage points, and rebalance when an asset drifts beyond it, or simply review once a year. The calculator flags any asset outside the band you set.
What this calculator does not include
Taxes, exit loads and other costs of selling are not included, and they can be significant, depending on the type of fund and how long you have held it. The look-ahead shows what your mix might become if you did nothing, using steady returns that you enter, while real returns are uneven. This is general information, not a recommendation to buy or sell.
Frequently asked questions
How often should I rebalance?
There is no single rule. Many investors review once a year, or rebalance when an asset drifts beyond a set band. More frequent rebalancing adds cost and may add tax without much benefit.
Will I pay tax if I rebalance?
It may be so. Capital gains tax can apply when you sell or switch, depending on the type of fund and how long you have held it, and an exit load may apply to units redeemed within the exit load period. Please check before acting, or consult a tax professional.
What target mix should I use?
That depends on your goals and your comfort with risk. See our Risk Profile Questionnaire and our Asset Allocation Glide Path calculator for ways to think about it.
Is the return shown guaranteed?
No. Mutual fund returns are market-linked and can be higher or lower than the rates you enter. Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Learn more on the AMFI investor awareness site.
Is my information saved?
The calculations run in your browser. The figures you enter are not sent to us or stored unless you choose to send them, for example by using the WhatsApp button.