Crypto Portfolio Rebalancing Calculator
Calculate the buys and sells needed to rebalance your cryptocurrency portfolio back to your target allocation.
What Is Portfolio Rebalancing? Over time, different assets grow at different rates — causing your actual allocation to drift away from your intended target. Rebalancing means buying and selling to restore your original allocation percentages.
The Formula Total portfolio = Sum of all asset values Target value for each asset = Total × Target allocation % Difference = Target value − Current value If positive → Buy that amount. If negative → Sell that amount.
The 5% Drift Rule Many investors rebalance only when an asset drifts more than 5% from its target. This avoids frequent small trades (and their fees) while keeping the portfolio in check. If all assets are within ±5% of their target, your portfolio is considered balanced.
Rebalancing Strategies
- Sell high, buy low: Classic rebalancing — trim overperformers, add to underperformers
- New capital: Add new money into underweight assets only (avoids selling and tax events)
- Calendar-based: Rebalance on a set schedule (quarterly, annually)
- Threshold-based: Only rebalance when drift exceeds your tolerance (e.g. 5–10%)
Tax Considerations Selling crypto at a profit typically triggers a taxable event (capital gains). Consult a tax adviser before executing large rebalancing trades. Using new capital contributions to rebalance avoids selling and defers taxes.
Important Note This calculator is for informational purposes only. Cryptocurrency values are highly volatile — allocations can change significantly in hours. Always verify current prices before executing any trades.