Asset Allocation Calculator
Your age, ability to tolerate risk and several other factors are used to calculate a desirable mix of stocks, bonds and cash.
How the asset allocation calculator works
It starts from a common age-based rule — roughly (110 − your age)% in stocks — then tilts the mix for your risk tolerance and sets aside a small cash cushion, leaving the rest in bonds.
Worked example: with your age of 40, the asset allocation calculator shows suggested stock allocation of 70%.
- Stocks (equities)
- 70%
- Bonds (fixed income)
- 25%
- Cash
- 5%
- Risk profile
- Moderate
The formula
Stocks ≈ 110 − age, adjusted ±12 for risk tolerance; cash is a small fixed slice; bonds = 100 − stocks − cash.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the asset allocation calculator
What is asset allocation?
How you divide your portfolio among stocks, bonds and cash. It is the biggest driver of both your long-term return and your risk — more than picking individual investments.
How should allocation change with age?
Generally you hold more stocks when young (a long horizon to ride out volatility) and shift toward bonds and cash as a goal nears, to protect against a late downturn.
Is the (110 − age) rule right for everyone?
It is a starting point, not a prescription. Your risk tolerance, other income and goals matter — this calculator adjusts the rule for your comfort with risk.
Is the Asset Allocation Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.