Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Calculate buy and sell amounts needed to restore target allocation across equity, debt, gold and cash.
Rebalance portfolio
Use new contributions and tax-efficient accounts before selling where practical.
Asset
Current %
Target value
Buy / (Sell)
How This Is Calculated
This calculator compares your current portfolio allocation (equity, debt, gold/alternatives, cash) against your target allocation, showing exactly how much needs to move into or out of each category to bring the portfolio back in line — market movements naturally drift a portfolio away from its target weights over time, and periodic rebalancing corrects this.
Frequently Asked Questions
Why does portfolio allocation drift from the target over time?
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Because different asset classes grow at different rates — if equity outperforms debt over a year, equity's share of the portfolio grows beyond its original target weight even without any new investment, simply due to relative price movement.
How often should I rebalance my portfolio?
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Common approaches are a fixed schedule (e.g., annually) or a threshold-based trigger (rebalance when an asset class drifts more than a set percentage from target) — both work; consistency matters more than the specific frequency chosen.
Does rebalancing have tax implications?
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Yes — selling an appreciated asset to rebalance realizes a capital gain (taxable), so consider directing new investments toward underweight categories first where possible, which can rebalance without triggering a taxable sale.
Scope: Computes the buy/sell amounts needed to rebalance a portfolio back to its target asset allocation percentages, given the current value of each asset class.
Calculation logic
Compute current total portfolio value = sum of all entered asset-class values.
Compute target value for each asset class = Current total portfolio value × Target allocation percentage for that class.
Rebalancing amount for each asset class = Target value − Current value (a positive figure indicates an amount to buy/add; a negative figure indicates an amount to sell/reduce).
Inputs and assumptions
Target allocation percentages are entered by the user based on their own risk profile and investment strategy — the calculator does not recommend a specific target allocation.
Rebalancing amounts shown are pre-tax/pre-transaction-cost figures; the actual amount realised on selling may differ after capital-gains tax and transaction charges.
Exclusions and edge cases
Does not account for capital-gains tax triggered by selling to rebalance — the user should factor this into the decision, especially for taxable (non-retirement) accounts.
Does not suggest a rebalancing threshold/band (e.g., only rebalance if drift exceeds 5%) — it computes the exact-target rebalancing amount for any drift entered.
Sources
No specific external regulatory source applies beyond general market-linked instrument mechanics.
Review status: reviewed and approved by CA Nikhil Gupta on 17 July 2026.
Guides that use this calculator
Background, worked examples and the rules behind these numbers.
Finin2min is not registered with the Securities and Exchange Board of India (SEBI) as an Investment Adviser or as a Research Analyst. This tool performs an arithmetic calculation on the figures you enter and is published for general information and educational purposes only. It is not investment advice, it is not personalised to your financial circumstances, objectives or risk tolerance, and it is not a recommendation to buy, sell or hold any security, scheme or product. Projected values are illustrative and follow directly from the assumptions you supply; actual returns will differ, and past performance does not indicate future results. Consider consulting a SEBI-registered Investment Adviser before acting on any investment decision.