Default port-channel load-balancing algorithm is based on Source MAC.
Rack1SW1#sh etherchannel load-balance
EtherChannel Load-Balancing Configuration:
src-mac
EtherChannel Load-Balancing Addresses Used Per-Protocol:
Non-IP: Source MAC address
IPv4: Source MAC address
IPv6: Source MAC address
However, IOS supports multiple load-balancing algorithm, you can choose it based on your environment.
Rack1SW1(config)#port-channel load-balance ?
dst-ip Dst IP Addr
dst-mac Dst Mac Addr
src-dst-ip Src XOR Dst IP Addr
src-dst-mac Src XOR Dst Mac Addr
src-ip Src IP Addr
src-mac Src Mac Addr
HTH,
jerry