Rebalancing
Portfolio rebalancing calculator
Calculate how rebalancing frequency and drift thresholds change turnover, tracking, and after-tax outcomes for the same allocation.
A rebalancing rule is a tradeoff: tighter tracking to the target allocation against higher turnover, transaction costs, and realized gains in taxable accounts.
ArthaPilot's Rebalancing Sensitivity runs the same portfolio under multiple cadences and thresholds over the same historical sample. The run measures the tradeoff instead of assuming it.
What it calculates
- Ending value, turnover, and drift for each rebalancing rule on the same allocation and date range.
- Calendar cadences (monthly, quarterly, annual) against deviation thresholds.
- After-tax differences when the portfolio is taxable and realization timing matters.
How to use it
Enter the target allocation, choose the cadences and thresholds to compare, and run the comparison over a shared sample period. The tool reports each rule side by side so you can see whether tighter rebalancing earned its extra turnover.
Access
Running the comparison requires a free account. You can reopen saved analyses later from the Workspace.
FAQ
- Is there a single best rebalancing frequency?
- No. The measured tradeoff depends on the allocation, the sample period, and whether the account is taxable. The calculator shows the tradeoff for your inputs instead of a universal rule.
- Does it account for taxes?
- Yes, when you configure the portfolio as taxable. Rebalancing trades realize gains, and the comparison surfaces that drag alongside turnover and tracking.