Crypto Portfolio Rebalancing Calculator

What Is Portfolio Rebalancing? Over time, different assets grow at different rates, so your actual allocation drifts away from the one you intended. Rebalancing means buying and selling to restore your original 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 the overperformers, add to the laggards.
• New capital: direct fresh money into the underweight assets only, and never sell.
• Calendar-based: rebalance on a schedule, quarterly or annually, whatever the drift.
• Threshold-based: only act when drift exceeds your tolerance, typically 5 to 10 points.

The new-capital method deserves more attention than it gets. Selling to rebalance realizes a gain, and in a portfolio that has run up hard the tax on that gain can easily exceed the benefit of getting back to target. Adding money instead achieves the same drift correction with no disposal and no tax event. It is slower, because you can only fix the underweights, but if you are contributing regularly anyway it costs nothing.

Enter an amount below under “new capital to add” and the calculator works out how to split it across the underweight assets to get you as close to target as that money allows, without selling anything.

Tax Considerations Selling crypto at a profit typically triggers a taxable event. In the United States a disposal held under a year is taxed as ordinary income, which at higher brackets can take more than a third of the gain. Consult a tax adviser before executing large rebalancing trades.

Important Note This calculator is for informational purposes only. Crypto is volatile enough that an allocation can drift several points in an afternoon, so treat any plan here as a snapshot. Always verify current prices before executing trades.