Asset Allocation Calculator
Find the right mix of stocks, bonds, and cash for your portfolio. Get an age-based recommendation, build a custom allocation, or check whether your current holdings need rebalancing. Works with any currency.
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How to Use This Calculator
Tab "By Age / Risk"
Enter your age, select a risk tolerance (aggressive, growth, moderate, conservative, or retirement), and enter your total portfolio value. The calculator uses the 110-minus-age rule, adjusted by your risk profile, to recommend a split across stocks, bonds, cash, and alternatives — with dollar amounts for each.
Tab "Custom Allocation"
Enter your own target percentages for stocks, bonds, cash, alternatives, and REITs. The percentages must add up to exactly 100%. Then enter your total portfolio value to see the dollar amount for each asset class.
Tab "Rebalance Check"
Enter the current dollar amounts of your holdings in each asset class, plus your target percentages. The calculator shows how far each class has drifted from its target and tells you exactly how much to buy or sell to get back on track.
The Formulas
Stocks % = 110 − Age, adjusted by risk tolerance
Risk adjustments:
Aggressive: +15%, Growth: +5%, Moderate: +0%, Conservative: −15%, Retirement: −25%
Dollar amount per asset class:
Amount = Total Portfolio × (Target % / 100)
Drift from target:
Drift = (Current Amount / Total Portfolio × 100) − Target %
Rebalance action:
Action = (Target % × Total Portfolio / 100) − Current Amount
Positive = buy more, Negative = sell
All calculations are universal and pre-tax. No country-specific tax rules or fund-specific data are applied. Results are estimates only.
Worked Examples
Example 1 — Age 35, aggressive risk, $200K portfolio
A 35-year-old investor with high risk tolerance and a $200,000 portfolio wants an age-based allocation.
With a long time horizon and high risk tolerance, 90% equities maximises long-term growth potential despite short-term volatility.
Example 2 — Custom 70/20/10 allocation on $500K
An investor wants a custom split of 70% stocks, 20% bonds, and 10% cash across a $500,000 portfolio.
A straightforward three-fund approach. The 70/20/10 split balances growth with moderate downside protection and a cash buffer for near-term needs.
Example 3 — Rebalance check: 78/22 back to 70/30
An investor’s $200,000 portfolio has drifted to 78% stocks / 22% bonds after a strong equity run. Target allocation is 70% stocks / 25% bonds / 5% cash.
With stocks drifting 8 percentage points above target, rebalancing is recommended. Selling $16,000 of stocks and redistributing to bonds and cash restores the target allocation.
Understanding Asset Allocation
What Is Asset Allocation?
Asset allocation is the process of dividing your investment portfolio among different asset categories — stocks, bonds, cash, and alternatives — to manage risk and maximise returns for your specific goals and time horizon. It is the single most important decision an investor makes.
The 110 Minus Age Rule
A widely used rule of thumb: subtract your age from 110 (or 120 for more aggressive investors) to determine what percentage of your portfolio should be in stocks. The remainder goes to bonds, cash, and other assets. A 30-year-old would hold 80% stocks, while a 60-year-old would hold 50%. This accounts for the fact that younger investors have more time to recover from market downturns.
Model Allocations by Life Stage
Aggressive (20s-30s): 80-90% stocks, 5-15% bonds, 0-5% cash. Long time horizon justifies high equity exposure.
Growth (30s-40s): 70-80% stocks, 15-25% bonds, 5% cash. Still growth-oriented with some diversification.
Moderate (40s-50s): 60-70% stocks, 25-35% bonds, 5-10% cash. Balanced approach as retirement becomes visible.
Conservative (50s-60s): 40-60% stocks, 30-40% bonds, 10-20% cash. Capital preservation gains importance.
Retirement (65+): 30-40% stocks, 40-50% bonds, 15-25% cash. Income and stability take priority.
When to Rebalance
Portfolios drift from their targets as different asset classes earn different returns. Most advisers recommend rebalancing when any asset class drifts more than 5 percentage points from its target, or on a calendar basis (annually or semi-annually). You can rebalance by selling overweight assets, buying underweight ones, or directing new contributions to underweight classes.
Beyond the Basics
Within each asset class, further diversification matters. Stocks can be split into domestic/international and large/small cap. Bonds can be split into government/corporate and short/long term. Alternatives might include REITs, commodities, or private equity. Your allocation strategy should evolve as your goals, income, and life circumstances change.