Portfolio Rebalancing Calculator

Calculate trades needed to restore target asset allocation across stocks, bonds, cash, and other assets.

Portfolio inputs

Enter current values and target weights to estimate buy, sell, and hold actions.

New cash to investMinimum trade size

Asset	Current value	Target weight
		%
		%
		%
		%

Current portfolio

$90,000

Target portfolio

$95,000

Trade required

$5,500

Largest drift

3.33%

Asset	Current weight	Target weight	Trade	Action
US stocks	46.67%	45%	+$750	Buy
International stocks	20%	20%	+$1,000	Buy
Bonds	26.67%	25%	-$250	Sell
Cash	6.67%	10%	+$3,500	Buy

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What is portfolio rebalancing?

Rebalancing restores an investment portfolio to its target allocation. If a 60/40 stock-bond portfolio drifts to 70% stocks after a rally, rebalancing sells some stocks and buys bonds, forcing a disciplined sell-high and buy-low process.

Rules and cost control

When to rebalance

Review allocations every 3 to 6 months.
Threshold method: rebalance only when an asset class is off target by 5 percentage points or more.
Calendar method: rebalance quarterly or semiannually regardless of drift.
Hybrid method: check on a schedule but trade only when the threshold is exceeded.

How to reduce trading cost and tax

Avoid tiny trades under roughly KRW 50,000 to KRW 100,000 when fees outweigh the benefit.
Use new contributions, dividends, and coupon payments to buy underweight assets before selling overweight assets.
Prioritize the assets furthest from target, and consider tax lots before selling taxable positions.
Record each rebalance decision so future performance can be reviewed without relying on memory.

Example scenarios

Conservative and balanced portfolios

Conservative KRW 50,000,000 case: domestic bond ETF KRW 15,000,000 or 30%, KODEX 200 KRW 18,000,000 or 36%, US bond ETF KRW 12,000,000 or 24%, cash KRW 5,000,000 or 10%.
The Korean source shows target changes that sell KODEX 200 by KRW 3,000,000, buy domestic bonds by KRW 5,000,000, and add cash by KRW 5,000,000.
Balanced KRW 100,000,000 case: KODEX 200 35%, S&P 500 20%, domestic bonds 20%, REIT 15%, gold 10%, with KRW 5,000,000 new cash.
Actions include selling KODEX by KRW 3,500,000, buying S&P 500 by KRW 6,250,000, buying domestic bonds by KRW 6,250,000, and selling gold by KRW 2,500,000.

Aggressive portfolio

In the KRW 200,000,000 aggressive example, domestic growth ETF is KRW 70,000,000, Nasdaq 100 KRW 50,000,000, emerging ETF KRW 30,000,000, sector ETF KRW 30,000,000, and commodities KRW 20,000,000. Targets shift to 30%, 30%, 20%, 15%, and 5%, so the guide sells domestic growth by KRW 10,000,000, buys Nasdaq by KRW 10,000,000, buys emerging markets by KRW 10,000,000, and sells commodities by KRW 10,000,000.