Stock Portfolio Allocation Calculator

About this calculator

Asset allocation is the process of dividing an investment portfolio among broad categories such as stocks, bonds, and cash, and is widely regarded — following research popularized by Brinson, Hood, and Beebower in the 1980s — as the single largest determinant of a portfolio's long-term risk and return, outweighing the choice of individual securities. A target allocation, such as 60% stocks / 30% bonds / 10% cash, reflects an investor's risk tolerance and time horizon: stocks offer higher expected growth with more volatility, bonds provide income and stability, and cash preserves capital with minimal return.

Financial advisors and individual investors set target percentages for each asset class and periodically rebalance a portfolio back to those targets as market movements cause the actual mix to drift, since gains in stocks, for example, will otherwise push a portfolio to hold more equity risk than originally intended.

This calculator takes a total investment amount and your target percentages for stocks, bonds, and cash and returns the exact dollar amount to allocate to each, automatically normalizing the weights if they don't sum to 100%.