How It Works
The calculator converts each target percentage into a dollar amount and verifies that the allocation totals 100%.
Asset allocation is a portfolio construction choice; this tool performs the arithmetic without recommending a strategy.
Enter the percentage you want assigned to each asset class. The calculator converts those percentages into dollar targets based on the portfolio value and checks that the percentages add to 100%.
The dollar targets are arithmetic allocations, not personalized investment advice. Actual portfolios can drift away from target weights as prices change, which may require periodic review or rebalancing.
Formula
- V — Portfolio value
- w — Allocation percentage
- A — Target dollar amount
Example
Example inputs: Portfolio $100,000 with 70% stocks, 20% bonds, 10% cash.
Result: Target amounts: $70,000 stocks, $20,000 bonds, $10,000 cash.
Frequently Asked Questions
Does this tell me what allocation to use?
No. It only calculates dollar amounts from percentages you choose.
What happens if the percentages do not add to 100%?
The calculator flags the allocation rather than treating the remaining percentage as an unspecified asset. A complete allocation should account for the full portfolio.
Does this calculate portfolio returns?
No. It converts target percentages into dollar amounts. It does not forecast returns, volatility, taxes, or the performance of individual assets.
This calculator provides estimates for informational purposes only and should not be considered financial, tax, or legal advice.