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Asset Allocation Calculator

Build a target allocation from age and risk tolerance, and see the return and risk it implies.

About Asset Allocation Calculator

Age sets a baseline equity weight, but the horizon matters more: money needed within five years should not be heavily in equities whatever your age. Risk tolerance then adjusts the result either way. Time horizon rather than age is the real driver of allocation, which is why a 30-year-old saving for a house next year should be conservatively positioned.

Formula

Asset Allocation

Equity % ≈ 110 − age, adjusted for risk tolerance and time until the money is needed

110 − age
A common starting heuristic for equity weight
horizon adjustment
Short horizons demand lower equity regardless of age

Worked example

With the default values below, Asset Allocation Calculator returns Recommended Equity Allocation of 72.0%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Your ageaccepts 18–90 years
38 years
Risk toleranceone of Conservative, Moderate, Aggressive
Moderate
Portfolio valueminimum 0
200,000
Years until you need the moneyaccepts 1–60 years
25 years

Results

Recommended Equity Allocation
72.0%
Recommended Bond Allocation
28.0%
Amount in Equities
$144,000.00
Amount in Bonds
$56,000.00
Expected Blended Return
6.38%

Step by step

  1. 1Values used
  2. 2Asset Allocation
  3. 3Recommended Equity Allocation= 72.0
  4. 4Recommended Bond Allocation= 28.0
  5. 5Amount in Equities= 144,000.00
  6. 6Amount in Bonds= 56,000.00
  7. 7Expected Blended Return= 6.38

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Asset Allocation calculated?

Equity % ≈ 110 − age, adjusted for risk tolerance and time until the money is needed Age sets a baseline equity weight, but the horizon matters more: money needed within five years should not be heavily in equities whatever your age. Risk tolerance then adjusts the result either way.

Why does Asset Allocation matter?

Time horizon rather than age is the real driver of allocation, which is why a 30-year-old saving for a house next year should be conservatively positioned.

What values do I need to enter?

This calculator takes 4 inputs: Your age, Risk tolerance, Portfolio value, Years until you need the money. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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