Bonds
20%
Asset Allocation Calculator
Get a suggested stock/bond/cash mix based on age and risk tolerance.
Suggested Stock Allocation
70%
Cash
10%
Stocks: 70%
Bonds: 20%
Cash: 10%
How to use the Asset Allocation Calculator
The Asset Allocation Calculator is free and runs entirely in your browser — no sign-up, and nothing you enter leaves your device. It opens pre-filled with a realistic example, so you can see how it works before replacing any figure with your own; the results update as you type. Press Calculate to refresh the result panel, or Reset to return to the example.
The inputs it asks for:
- Your Age — a number.
- Risk Tolerance — choose one — Conservative, Moderate, Aggressive.
The formula
It starts from a common rule of thumb — hold roughly (110 − your age)% in stocks — then tilts the mix for your risk tolerance and fills the rest with bonds and a slice of cash:
Stocks % = clamp(110 − age ± risk adjustment, 10, 95)- 110 − age
- the baseline stock share, which falls as you age
- risk adjustment
- −15 for conservative, +15 for aggressive
- remainder
- split across bonds and cash
This is a starting template, not advice. The old "100 − age" rule has drifted higher (110, even 120) as lifespans lengthen. Your own horizon, other income and comfort with volatility should shape the final mix.
Worked example
Using the example values — Your Age 40, Risk Tolerance Moderate — the Asset Allocation Calculator returns a Suggested Stock Allocation of 70%. It also reports Bonds (20%), Cash (10%).
Prefer your own numbers? Change any field above and this recomputes instantly.
Key terms
- Asset allocation
- How a portfolio is divided among stocks, bonds and cash.
- Risk tolerance
- Your capacity and willingness to endure ups and downs for higher expected return.
- Rebalancing
- Periodically returning to your target mix as markets move it.
- Glide path
- The way a target allocation shifts toward bonds as you approach a goal.
Frequently asked questions
Where does 110 − age come from?
It's a rule of thumb: younger investors, with time to recover, hold more stocks; the share falls with age. Older "100 − age" versions have been nudged up as retirements lengthen.
Should I follow this exactly?
Treat it as a starting point. Your time horizon, job stability, pensions and stomach for volatility all justify moving away from a generic template.
How often should I rebalance?
Commonly once or twice a year, or when a holding drifts a set amount from target. Rebalancing sells what's risen and buys what's lagged, keeping risk in check.