Calculate optimal equity and debt allocation based on your age and risk tolerance. Free online risk allocation calculator with formula, examples, and FAQ.
Risk allocation determines how your investment portfolio is divided between higher-risk (equity) and lower-risk (debt) assets. The classic rule of thumb is "100 minus your age" for equity allocation, but this should be adjusted based on your personal risk tolerance and investment timeline. This calculator provides a personalized allocation recommendation considering all three factors.
Equity% = (100 - Age) + Risk Adjustment + Horizon AdjustmentThe base allocation follows the "100 minus age" rule. Risk tolerance (1-10) adjusts this by -15% to +15% (conservative to aggressive). Investment horizon adds +5% for long-term (>15 years) or subtracts -10% for short-term (<5 years). The final equity percentage is clamped between 10-90% to maintain diversification.
| Input | Output |
|---|---|
| Age: 30, Risk Tolerance: 7/10, Horizon: 20 years | Equity: 76%, Debt: 24%, Risk: Aggressive |
| Age: 45, Risk Tolerance: 5/10, Horizon: 10 years | Equity: 55%, Debt: 45%, Risk: Moderate |
| Age: 55, Risk Tolerance: 3/10, Horizon: 5 years | Equity: 20%, Debt: 80%, Risk: Conservative |