Portfolio weights

Portfolio Allocation Calculator

Calculate target weights, dollar allocations, rebalance amounts, expected return, and estimated volatility for a portfolio scenario.

Allocation model

Calculate target allocation

Results use your target weights, expected returns, volatility assumptions, and portfolio value.

Target weights

100%

Includes 5% cash target. Aim for 100% total target weight.

Expected return

6.6%

Estimated volatility

11.9%

Current cash

$5,000

Target cash

$5,000

Allocation drift

Portfolio value

$100,000

Rebalance amounts

US stocks

55% current to 55% target

+$0

International stocks

15% current to 20% target

+$5,000

Bonds

25% current to 20% target

-$5,000

Formula

Target value = portfolio value x target weight

Rebalance amount = target value - current value

Expected return = sum(target weight x return assumption)

Estimated volatility uses your volatility and average-correlation assumptions. It is a simplified scenario calculation.

How the portfolio allocation calculation works

The calculator uses portfolio value and target weights to estimate how many dollars each holding should receive. It compares those targets with current values to show buy or sell amounts for a rebalance.

Core formula

Target value = portfolio value x target weight

Rebalance amount = target value - current value

Expected return = sum(target weight x expected return)

Input definitions

Portfolio value: The total account value used to translate target percentages into dollars.
Cash target: The intended cash allocation as a percentage of portfolio value.
Current value: The current dollar value for each holding or asset sleeve.
Target weight: The intended percentage allocation for each holding.
Average correlation: A simplified assumption for how risky holdings move together.

Worked example

If a $100,000 portfolio targets 55% US stocks, 20% international stocks, 20% bonds, and 5% cash, the dollar targets are $55,000, $20,000, $20,000, and $5,000. If international stocks are currently $15,000, the rebalance amount for that sleeve is +$5,000.

Continue with AlgovestIQ

Portfolio Optimizer

Move from manual target weights to optimized risk-return allocation proposals.

Open optimizer

Allocation Guide

Review practical allocation rules for diversification, risk control and rebalancing.

Read guide

Portfolio Examples

Compare example portfolios before choosing a target mix.

Browse examples

Related calculators

Related tools are selected for the portfolio allocation calculator workflow.

Position Size Calculator

Translate a single stock idea into shares and dollars at risk.

Calculate position size

Stock Profit Calculator

Calculate gain, loss, cost basis and annualized return for one holding.

Calculate stock profit

Portfolio allocation calculator FAQ

What does a portfolio allocation calculator do?

A portfolio allocation calculator translates target weights into dollar targets and rebalance amounts, then summarizes expected return and estimated volatility from the assumptions entered.

Are the expected return and volatility results forecasts?

No. They are scenario outputs based on user-entered assumptions for target weights, expected return, volatility, and average correlation.

Why should target weights add to 100%?

Target weights represent the full portfolio mix. Cash plus all holdings should equal 100% so every dollar has an intended allocation.

How are rebalance amounts calculated?

Each target dollar value equals portfolio value times target weight. The rebalance amount is target value minus current value.