Portfolio Input
Rebalancing Results
👆 Enter your portfolio details and click "Calculate Rebalancing" to see results
How It Works
The "Lazy" Approach
Traditional rebalancing involves selling overweighted assets and buying underweighted ones, which creates transaction costs and potential tax implications. The "lazy" approach minimizes these issues by:
- When contributing: Only buy underweighted assets
- When withdrawing: Only sell overweighted assets
- Never unnecessary transactions: Avoid selling to buy back at different prices
The Algorithm
The calculator uses fractional deviation optimization:
Fractional Deviation = (Actual Allocation / Target Allocation) - 1
- For contributions: Maximizes the minimum fractional deviation
- For withdrawals: Minimizes the maximum fractional deviation
- Proportional allocation: Distributes money to improve all asset allocations simultaneously
Benefits
- ✅ Reduced transaction costs
- ✅ Minimized taxable events
- ✅ Mathematically optimal allocation
- ✅ Simple to execute
About This Calculator
Privacy & Security
🔒 All calculations are performed entirely in your browser. No financial data is transmitted to any server. Your portfolio information remains completely private.
Accuracy
📊 This calculator uses high-precision JavaScript arithmetic to ensure accurate results for financial calculations. Results are rounded for display but calculations maintain full precision.
Technology
🚀 Built with modern web technologies:
- Vanilla JavaScript for maximum compatibility
- CSS Grid and Flexbox for responsive design
- Web standards for accessibility
- No external dependencies
Disclaimer
⚠️ This tool is for educational and informational purposes only. It is not investment advice. Please consult with a qualified financial advisor before making investment decisions.