Portfolio Rebalancing Calculator
Optimize your crypto portfolio allocation with smart rebalancing strategies
Portfolio Configuration
🎯 What is Portfolio Rebalancing?
Portfolio rebalancing is the process of realigning the weightings of assets in your investment portfolio to maintain your desired asset allocation. Over time, market movements cause your portfolio to drift from its target allocation, potentially exposing you to more risk than intended.
Key Features
📊 Allocation Analysis
Compare current vs target allocations and identify portfolio drift
💰 Cost Optimization
Calculate gas costs, tax impacts, and determine if rebalancing is worthwhile
📅 Frequency Optimizer
Find optimal rebalancing frequency based on portfolio size and costs
🎯 Threshold-Based
Set custom thresholds to trigger rebalancing only when needed
How to Use
- Add your portfolio assets (at least 2 required)
- Enter current value for each asset in USD
- Set target allocation percentage (must total 100%)
- Choose rebalancing frequency (daily to yearly, or threshold-based)
- Input gas cost per transaction and your tax rate
- Enable tax-loss harvesting if applicable
- Click "Calculate" to see rebalancing recommendations
Understanding Results
Allocation Drift: Average percentage difference between current and target allocations. Higher drift means your portfolio needs rebalancing.
Net Benefit: Estimated benefit of rebalancing minus costs. Positive values indicate rebalancing is worthwhile.
Action Column: Shows whether you should BUY, SELL, or HOLD each asset to reach target allocation.
Risk Score: Portfolio concentration risk (0-100). Lower is better. Scores above 60 indicate high concentration risk.
Annual Cost: Estimated yearly cost if you rebalance at chosen frequency. Use this to compare strategies.
Rebalancing Strategies
⏰ Time-Based Rebalancing
Rebalance on a fixed schedule (monthly, quarterly, yearly).
✅ Pros: Simple, disciplined, predictable costs
❌ Cons: May rebalance unnecessarily or miss critical opportunities
🎯 Threshold-Based Rebalancing
Rebalance only when allocation drifts beyond set threshold (e.g., 5%).
✅ Pros: More responsive, minimizes unnecessary trades
❌ Cons: Requires monitoring, less predictable costs
🔄 Hybrid Approach
Combine time and threshold: check quarterly but only rebalance if drift > 5%.
✅ Pros: Best of both worlds, optimal for most investors
❌ Cons: Slightly more complex to implement
Tax-Loss Harvesting
💡 Tax-Loss Harvesting is the practice of selling losing investments to offset capital gains taxes. When enabled, the calculator considers potential tax implications of selling assets.
This can significantly reduce your rebalancing costs if you have assets trading below purchase price.
Best Practices
- Small portfolios (<$10k): Rebalance quarterly or when drift > 10%
- Medium portfolios ($10k-$100k): Monthly or threshold-based (5% drift)
- Large portfolios (>$100k): Weekly or threshold-based (3% drift)
- Always consider transaction costs vs portfolio drift
- During high volatility, consider threshold-based over time-based
- Use tax-loss harvesting to offset gains from winning positions
- Review target allocations annually based on risk tolerance
⚡ Pro Tips
Automate When Possible
Use DeFi protocols like Balancer or Indexed Finance for automated rebalancing
Rebalance with New Capital
Add new investments to underweight assets instead of selling winners
Track All Costs
Include gas fees, exchange fees, slippage, and tax implications in calculations
Avoid Over-Rebalancing
Too frequent rebalancing can erode returns through fees and taxes
Watch for Wash Sales
Don't buy back sold assets within 30 days if claiming tax losses
Consider Market Conditions
High volatility may warrant more frequent rebalancing