Enter the current value of each position and the weight you want it to have. The tool calculates how far your portfolio has drifted and which trades bring it back to target.
Total value
$10,000.00
| Asset | Current value | Target % | Current % | Drift | Trade | |
|---|---|---|---|---|---|---|
| 70% | +20% | Sell $2,000.00 | ||||
| 20% | -10% | Buy $1,000.00 | ||||
| 10% | -10% | Buy $1,000.00 |
Total to buy
$2,000.00
Total to sell
$2,000.00
Max drift
20%
Buys and sells sum to the same figure: rebalancing redistributes capital rather than adding it. The calculation excludes fees, spread, gas and taxes, and in many jurisdictions selling to rebalance is a taxable event.
Rebalancing means returning a portfolio to its target weights after price moves have pushed it away. If you decide on 50% BTC, 30% ETH and 20% in everything else, and BTC rises much faster than the rest, a few months later your actual portfolio might sit at 65/22/13 without you having placed a single trade. Drift happens on its own.
The calculation is simple arithmetic. Sum the portfolio's total value, apply each target weight to that total to get the desired value per position, and the difference from the current value is the outstanding trade. Positions above target get sold, positions below get bought, and by construction the buys and sells sum to the same figure: rebalancing adds and removes no capital, it only redistributes it.
The drift threshold exists because rebalancing every time something moves half a point is expensive. Common practice is to set a band, say five percentage points, and act only when a position exceeds it. That cuts the number of trades substantially without straying far from target. The alternative is calendar rebalancing, once a quarter or once a year, which is simpler to maintain.
Two things this tool does not calculate are worth keeping in mind. The first is cost: every trade pays fees, spread and, on-chain, gas, and on small portfolios that can exceed the benefit of adjusting by a few points. The second is tax: in many jurisdictions selling a position to rebalance is a taxable event even though you withdraw nothing to fiat, so aggressive rebalancing can generate a meaningful tax bill. Rebalancing also does not improve returns by itself: what it does is control risk, stopping a position that has run up from dominating the portfolio.
