Total Annual Return Calculation

[Account Closed]

Can someone help me understand how the annual total return is calculated on the BP Rental Property Calculator? It seems like something was changed in the calculator in the past couple of months because I used to be able to come up with the same number as the calculator when doing it by hand, but now the numbers don't match up. Here how I am calculating it: (Total Profit if Sold/Total Invested Capital)/Time (in years) When I do this by hand, it matches for the first year, but after that it doesn't. 

Thanks in advance for the help!

[Ben Unger]

Eric, I spent some time trying to figure it out and finally got it. This might be the long way of calculating the annualized total return, but my source is from Investopedia.com.

Annualized total return for (Year 2) = (1+A)^(1/Y)-1

Where: A= (Total profit if sold/total invested capital)/(Previous year 1 - 0***)

Y= 2 for the current year

*** this value increases by increments of 1 (so for year 3 annualized total return you would use 1)

Hope this helps!