How to calculate the real return on a bonus

Updated October 16, 2026 · Offer data last verified 2026-10-16 · Not financial or tax advice.

A $1,000 bonus sounds better than a $200 bonus, until you see that one needs $250,000 for a year and the other needs $5,000 for 90 days. To compare offers fairly, turn every bonus into the same unit: an annualized percentage return on the money you tie up. That's the number Bonusfolio ranks by.

The formula

Annualized return = (bonus ÷ deposit) × (365 ÷ hold days)

Bonus ÷ deposit gives the raw percentage. Multiplying by 365 ÷ hold days scales it to a year, so a 90-day offer and a 365-day offer can be compared directly.

A worked example from live data

Take Moomoo. Its lowest tier pays $30 on $500 with a 60-day hold:

Raw: $30 ÷ $500 = 6.00%
Annualized: 6.00% × (365 ÷ 60) = 36.50%

Its tiers compare like this:

$500 → $30 = 36.50% annualized
$2,000 → $100 = 30.42% annualized
$10,000 → $200 = 12.17% annualized
$50,000 → $400 = 2.43% annualized
$100,000 → $1,000 = 2.03% annualized

The biggest tier isn't always the best return per dollar. Often the extra money is better spent on a second offer at another firm.

Step 2: subtract what the money would earn anyway

Annualized return measures the bonus by itself. If the deposit can sit in a money market fund or Treasury bills at the new broker, you keep earning that yield too, and the bonus is extra. If the offer makes you hold cash that earns less than you'd get elsewhere, subtract the difference. For an in-kind ACATS transfer, your investments keep doing what they were already doing, so the bonus is close to pure gain.

Step 3: adjust for taxes

Multiply the bonus by (1 − your marginal tax rate). At a 30% combined rate, a 4% annualized bonus is roughly 2.8% after tax. See tax basics.

Step 4: subtract fees and subscriptions

Transfer-out fees that won't be reimbursed, account fees, and paid membership tiers needed for higher match rates all reduce the net bonus. Subtract them before annualizing.

Step 5: account for payout timing

Some offers pay the full bonus after the hold. Others pay in instalments over years, or require the assets to stay for years. Our formula uses the full hold period, so long-hold offers show low annualized numbers, which is fair because your money is committed for that long. Remember the clawback risk too: how clawbacks work.

Current leaders by annualized return (hold ≤ ~1 year)

Offer	Max bonus	Min deposit	Hold	Best yield	Source
Moomoo	$1,000	$500	180d	36.50%	official terms ↗
CIT Bank / First Citizens Self-Directed Investing	$750	$1,000	60d	15.21%	official terms ↗
E*TRADE	$10,000	$1,000	365d	5.00%	official terms ↗
J.P. Morgan Self-Directed Investing	$1,000	$5,000	90d	4.06%	official terms ↗
Citi Personal Wealth Management	$5,000	$50,000	90d	4.06%	official terms ↗
TradeStation	$500	$5,000	270d	4.06%	official terms ↗
Moomoo	$600	$20,000	360d	3.04%	official terms ↗
Merrill Edge	$1,000	$20,000	90d	2.03%	official terms ↗

Shortcut: let the calculator do it

The Bonusfolio calculator takes the amount you can move and splits it across non-overlapping offers to maximise total bonus, using the same tier data shown on each offer page.

FAQ

What is a good annualized return on a bonus?

Compare it with what the same money would earn risk-free, such as a high-yield savings account or Treasury bills. A bonus that beats that after tax adds value.

Why does Bonusfolio rank by annualized return instead of bonus size?

Because size ignores how much money is tied up and for how long. Annualizing puts every offer on the same scale.

Does the formula include market gains?

No. It measures only the bonus relative to the money required. Investment gains or losses happen regardless of the bonus.

How should I treat multi-year payouts?

Use the full period the money must stay. That makes long offers look smaller on an annualized basis, which reflects the real commitment.