Finance calculator

Free asset allocation calculator

Build an age-appropriate investment allocation — enter your age and risk tolerance to see a recommended stock, bond, and cash mix, updated live, as you type.

InputsLive
Compounding
Initial principal
$
Monthly contribution
$/mo
Annual interest rate
%
Years
yrs
Result
Future value
$37,405
Interest: $15,405 · Invested: $22,000
Future value$37,405
Interest earned$15,405
Total invested$22,000
Growth factor1.7×

Hypothetical projection. Excludes taxes, inflation, and fees. Actual investment returns vary.

Results are estimates. Consult a professional.

How it's calculated

How the asset allocation calculator works

Asset allocation is the process of dividing an investment portfolio among different asset categories — primarily stocks, bonds, and cash. The calculator uses your age and risk tolerance to suggest a target mix, then shows how far your current holdings deviate from that target so you know when to rebalance.

Stock % (rule of 110) = 110 your age
Stock % (rule of 120) = 120 your age
Rebalance trigger: actual weight deviates ±5% from target
Drift = (current weight target weight) / target weight × 100
Vanguard target-date fund glide paths (2024)
Example

Worked example: age-35 investor with $100,000

Example: 35-year-old, $100,000 portfolio, moderate risk

Target using the 110 rule: 75% stocks ($75,000), 20% bonds ($20,000), 5% cash ($5,000). Current holdings after market moves: $80,000 stocks / $16,000 bonds / $4,000 cash.

Stock target = 110 35 = 75%
Actual stock weight = $80,000 / $100,000 = 80% (drift = +5%)
Bond target = 20%; actual = 16% (drift = 4%)
Action: sell $5,000 stocks → buy $4,000 bonds + $1,000 cash
$5,000
Amount to shift from stocks to bonds/cash to restore the target 75/20/5 mix.
Quick reference

Suggested allocations by age and risk profile

The table shows stocks / bonds / cash percentages for three risk profiles. Conservative investors hold more bonds; aggressive investors hold more stocks. All figures are starting points — your actual situation (pension, other assets, risk tolerance) may justify a different mix.

AgeAggressiveModerateConservative
2590% / 10% / 0%80% / 15% / 5%65% / 30% / 5%
3580% / 15% / 5%70% / 25% / 5%55% / 35% / 10%
4570% / 25% / 5%60% / 30% / 10%45% / 40% / 15%
5560% / 30% / 10%50% / 35% / 15%35% / 45% / 20%
6550% / 40% / 10%40% / 40% / 20%25% / 50% / 25%

Source: Fidelity and Vanguard glide-path benchmarks (2024). Stocks / Bonds / Cash.

Practical tips

Tips for managing your asset allocation

Getting the allocation right is only half the job — keeping it right over time is the other half. Markets drift your weights without any action on your part, so building a rebalancing habit is just as important as the initial target.

  • Rebalance on a schedule, not on emotion — annual or semi-annual rebalancing is sufficient for most investors and avoids panic selling.
  • Use new contributions first — direct new money into underweight assets before selling anything; this rebalances without triggering taxable events.
  • Factor in all accounts together — treat your 401(k), IRA, and taxable accounts as one portfolio when evaluating your overall allocation.
  • Revisit your target after major life events — a new job, marriage, or approaching retirement each warrants a fresh look at your risk profile.
  • Hold bonds in tax-advantaged accounts — bond interest is taxed as ordinary income; keeping bonds inside an IRA or 401(k) shelters that income.
Accuracy & limits

Accuracy and limitations

The age-based rules (110 or 120 minus age) are useful starting points, not precise prescriptions. They assume a standard career trajectory and average risk tolerance, and they ignore pension income, real-estate holdings, business equity, life expectancy differences, and planned large expenditures. Two people of the same age can have very different optimal allocations.

Not financial advice — consult a financial professional for your specific situation.

Glossary

Key terms

The percentage breakdown of a portfolio across major asset classes — typically stocks, bonds, and cash or cash equivalents.
Selling over-weighted assets and buying under-weighted ones to restore your target allocation percentages.
The natural change in weights that occurs as different assets grow at different rates; left unchecked it increases portfolio risk over time.
A gradual shift from aggressive (stock-heavy) to conservative (bond-heavy) allocation as an investor approaches retirement.
An investor's psychological and financial ability to endure portfolio losses without abandoning their strategy.
Spreading investments across assets with low correlation so that a loss in one category is offset by stability or gains in another.
About

About this calculator

Part of our finance calculators suite — explore all calculators.

Questions

Frequently asked questions about the free asset allocation calculator

An asset allocation calculator is a free online tool that helps you suggest a stock/bond allocation based on your age (110 − age rule). Quick rule of thumb. Adjust for risk tolerance. It runs entirely in your browser with instant results and no sign-up.
No — actual loan terms depend on credit, income docs, and lender underwriting. Use this for planning and what-if scenarios; get a real Loan Estimate before making decisions.
When the calculator asks for them. PITI calculations include property tax, insurance, and PMI; raw P&I calculations don't.
Lenders round payment amounts and may include escrow buffers. Property tax and insurance change over time. Real payments vary 1-5% from these estimates.

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