Two-Asset Portfolio Rebalancing CalculatorFree online financial calculator — instant results, no sign-up
Calculate trades needed to restore a two-asset portfolio to a target allocation without fees.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Two-Asset Portfolio Rebalancing Calculator
The Two-Asset Portfolio Rebalancing Calculator calculates the dollar trades needed to bring your stock and bond holdings back to a target stock allocation without fees. Enter your current stock and bond values and your desired stock percentage; the remaining percentage is assigned to bonds. The results show the target stock value and whether to buy or sell each asset while keeping the total portfolio value unchanged.
- Current stock value ($)
- The current market value of your stock holdings in dollars, with a default of $70,000.
- Current bond value ($)
- The current market value of your bond holdings in dollars, with a default of $30,000.
- Target stock allocation (%)
- The percentage of the total portfolio you want held in stocks, from 0% to 100%, with a default of 60%.
Formula and method
V = S + B; p = a / 100; S_target = V × p; B_target = V × (1 − p); ΔS = S_target − S; ΔB = B_target − B = −ΔS.
- SCurrent stock value in dollars.
- BCurrent bond value in dollars.
- VTotal current portfolio value in dollars.
- aTarget stock allocation entered as a percentage.
- pTarget stock allocation expressed as a decimal.
- S_targetTarget stock value in dollars after rebalancing.
- B_targetTarget bond value in dollars after rebalancing.
- ΔSStock trade in dollars: positive means buy and negative means sell.
- ΔBBond trade in dollars: positive means buy and negative means sell.
Add the current stock and bond values, convert the target stock percentage to a decimal, and multiply the total by that decimal to find the target stock value. Assign the remaining portfolio value to bonds, then subtract each current holding from its target to find its trade. With the defaults, V = $70,000 + $30,000 = $100,000 and p = 60 / 100 = 0.60. Target stock value = $60,000.00; Stock trade: positive means buy = -$10,000.00; Bond trade: positive means buy = $10,000.00. Selling $10,000.00 of stocks funds the $10,000.00 bond purchase.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Current stock value70000 $
- Current bond value30000 $
- Target stock allocation60 %
Results
- Target stock value$60,000.00
- Stock trade: positive means buy-$10,000.00
- Bond trade: positive means buy$10,000.00
How to use the Two-Asset Portfolio Rebalancing Calculator
- 1Enter the current market value of your stocks in dollars; the default is 70000.
- 2Enter the current market value of your bonds in dollars; the default is 30000.
- 3Enter your target stock allocation as a percentage; the default is 60, leaving 40% for bonds.
- 4Review the calculated target stock value and the signed stock and bond trades.
- 5Read negative trades as sales and positive trades as purchases, then consider taxes and trading constraints before placing any orders.
Reading your result
The Target stock value row shows the dollar amount to hold in stocks after rebalancing: $60,000.00 with the default inputs. The Stock trade: positive means buy row shows the change needed in stocks: -$10,000.00 means sell $10,000.00 of stocks. The Bond trade: positive means buy row shows the change needed in bonds: $10,000.00 means buy $10,000.00 of bonds. The resulting holdings are $60,000.00 in stocks and $40,000.00 in bonds, matching the 60% stock and 40% bond target. A zero trade means that asset is already at its target.
Limitations
The calculation assumes nonnegative stock and bond values, a target stock allocation between 0% and 100%, and no deposits or withdrawals. It excludes fees, taxes, bid–ask spreads, and price changes during execution, so sale proceeds are assumed to fund the purchase exactly. Results are dollar amounts, not share or bond quantities; whole-share requirements, bond denominations, minimum orders, and rounding may prevent an exact allocation. Cash and other assets are not included. If both holdings are zero, all dollar results are zero but portfolio allocation percentages are undefined. This tool calculates trades for a target you choose; it does not assess whether that target suits your goals or risk tolerance.
Common questions
Why does the default calculation show a negative stock trade?+
The current $70,000 stock holding exceeds the $60,000.00 target for a 60% stock allocation in the $100,000 portfolio. The -$10,000.00 stock trade therefore means sell $10,000.00, not buy.
Why is there no separate target bond allocation input?+
This calculator includes only stocks and bonds, so their target percentages must total 100%. A 60% stock target automatically assigns the remaining 40% to bonds.
Should the stock and bond trades always cancel each other out?+
Yes. With no fees, deposits, or withdrawals, ΔS + ΔB = 0. In the default example, the -$10,000.00 stock trade and $10,000.00 bond trade offset exactly, leaving total portfolio value unchanged.
Can this calculator rebalance using only a new contribution instead of selling stocks?+
Not directly. It calculates transfers between existing stock and bond holdings and has no contribution input. Adding cash changes the portfolio total, so the displayed trades should not be treated as a contribution-only plan.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
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Results are estimates for informational purposes and are not financial, medical or legal advice.