Rebalancing Drift Projection
Calculator
Results
- Final balance
- $372,756.35
- Balance if never rebalanced
- $415,856.20
- Final stock weight (%)
- 80.860798%
- Drift from the target weight (%)
- 20.860798%
Portfolio value over time
- Portfolio balance
- Stock sleeve value
- Bond sleeve value
Projection schedule
| 1 | 106,800.00 | 65,400.00 | 41,400.00 | 61.24 |
| 2 | 114,062.40 | 71,286.00 | 42,849.00 | 62.46 |
| 3 | 121,818.64 | 77,701.74 | 44,348.72 | 63.66 |
| 4 | 130,102.31 | 84,694.90 | 45,900.92 | 64.85 |
| 5 | 138,949.27 | 92,317.44 | 47,507.45 | 66.02 |
| 6 | 148,397.82 | 100,626.01 | 49,170.21 | 67.18 |
| 7 | 158,488.87 | 109,682.35 | 50,891.17 | 68.31 |
| 8 | 169,266.11 | 119,553.76 | 52,672.36 | 69.42 |
| 9 | 180,776.21 | 130,313.60 | 54,515.89 | 70.50 |
| 10 | 193,068.99 | 142,041.82 | 56,423.95 | 71.57 |
| 11 | 206,197.68 | 154,825.58 | 58,398.79 | 72.61 |
| 12 | 220,219.12 | 168,759.89 | 60,442.75 | 73.63 |
| 13 | 235,194.03 | 183,948.28 | 62,558.24 | 74.62 |
| 14 | 251,187.22 | 200,503.62 | 64,747.78 | 75.59 |
| 15 | 268,267.95 | 218,548.95 | 67,013.95 | 76.53 |
| 16 | 286,510.17 | 238,218.35 | 69,359.44 | 77.45 |
| 17 | 305,992.86 | 259,658.00 | 71,787.02 | 78.34 |
| 18 | 326,800.38 | 283,027.23 | 74,299.57 | 79.21 |
| 19 | 349,022.80 | 308,499.68 | 76,900.05 | 80.05 |
| 20 | 372,756.35 | 336,264.65 | 79,591.55 | 80.86 |
Comparison
| Scenario | Final balance | Final stock weight (%) |
|---|---|---|
| Doing nothing | 415,856.20 | 80.86 |
| Your plan | 372,756.35 | 60.00 |
Formula
rebalanced: V·[w(1+rs) + (1−w)(1+rb)] each year; drift: V·w(1+rs)^t + V(1−w)(1+rb)^t= 372756.35
Note
Returns are not guaranteed and this is not investment advice. This projection applies the displayed standard formula to the rates you entered and assumes they repeat, unchanged, every single period. Real markets do not behave that way: returns vary year to year, can be negative, and past or projected performance never guarantees future results. The model ignores taxes, trading costs, currency effects and any fee you did not enter. Treat the figures as an illustration of the arithmetic, not a forecast, and consult a licensed adviser before acting on any of them.
More in Portfolio growth
See all →Frequently asked questions
What is portfolio drift and why does it happen without rebalancing?+
Drift happens because different asset classes grow at different rates — if stocks outperform bonds over several years, the stock portion of your portfolio grows to represent a larger share than your original target allocation, even though you never actively changed anything.
Why does drift matter if the portfolio's total value is still growing?+
An unmonitored portfolio can drift toward a much riskier allocation than originally intended, since a growing stock share increases overall volatility and downside exposure — the total value growing doesn't mean the risk profile has stayed the same as when you first set the allocation.
What does rebalancing actually do to the growth path?+
Rebalancing periodically sells some of the outperforming asset and buys more of the underperforming one to restore the target mix, which can slightly reduce long-run returns in a strong bull market for one asset class but generally reduces volatility and can improve risk-adjusted returns over a full market cycle.
Does rebalancing always improve total returns?+
Not necessarily — in a market where one asset class persistently outperforms over many years, rebalancing away from it periodically can reduce total returns compared to letting it run unchecked. Its main benefit is controlling risk and enforcing a buy-low-sell-high discipline, not guaranteeing higher returns.
How often should rebalancing happen based on what this calculator shows?+
The calculator can illustrate different rebalancing frequencies (annual, threshold-based, etc.) so you can see the trade-off — more frequent rebalancing keeps the allocation tighter to target but can incur more transaction costs or tax events, while less frequent rebalancing allows more drift between adjustments.