Rebalancing Threshold (5/25 Rule) Calculator
Larry Swedroe's 5/25 bands: does any holding's drift breach the absolute-5% or relative-25% trigger?
Formula
Calendar rebalancing trades too often in calm markets and too rarely in crashes; threshold bands act exactly when allocations actually drift. The relative-25% leg matters for small allocations — a 4% gold sleeve hitting 5% is a 25% breach the absolute rule would ignore.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Need rebalancing threshold calculator results fast? Analysts, founders, traders and finance professionals use the Rebalancing Threshold Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Rebalancing Threshold (5/25 Rule) Calculator
Larry Swedroe's 5/25 bands: does any holding's drift breach the absolute-5% or relative-25% trigger? Calendar rebalancing trades too often in calm markets and too rarely in crashes; threshold bands act exactly when allocations actually drift. The relative-25% leg matters for small allocations — a 4% gold sleeve hitting 5% is a 25% breach the absolute rule would ignore. The governing relationship is trigger if |drift| ≥ 5 pts OR ≥ 25% of target. The Rebalancing Threshold Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Rebalancing Threshold (5/25 Rule) Calculator
- 1Enter Asset target weight (%), Current weight (%) into the Rebalancing Threshold Calculator.
- 2The result is computed automatically using trigger if |drift| ≥ 5 pts OR ≥ 25% of target — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Rebalancing Threshold (5/25 Rule) Calculator?
- ✓Computes rebalancing threshold calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Rebalancing Threshold Calculator?+
Rebalancing Threshold Calculator uses trigger if |drift| ≥ 5 pts OR ≥ 25% of target. Calendar rebalancing trades too often in calm markets and too rarely in crashes; threshold bands act exactly when allocations actually drift. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Rebalancing Threshold Calculator need?+
Enter Asset target weight (%), Current weight (%) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Rebalancing Threshold Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Rebalancing Threshold Calculator?+
The relative-25% leg matters for small allocations — a 4% gold sleeve hitting 5% is a 25% breach the absolute rule would ignore.
What is the Rebalancing Threshold Calculator based on?+
The method follows authoritative sources: Swedroe — the 5/25 rebalancing rule. The formula and references are shown on the page so you can verify and cite the result.
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