I was always taught that der Badezimmer referred to the bathroom, and die Toilette could only mean the toilet.
I'm not 100% sure of this, but I believe das Badezimmer is bathroom, meaning a room with a tub and/or shower (possibly with or without a toilet, but I'm not sure) and die Toilette means the toilet and a room containing a toilet. Are you American? We tend to call any room with a toilet a bathroom, whether it has a bathtub/shower or not, but in British English, "toilet" refers to a room with just a toilet and sink, no tub/shower. The same goes for German. A "Badezimmer" may or may not have a toilet, but it has a tub/shower. A "Toilette" just has a toilet and sink. So, if you're out shopping in Germany and you need to use the bathroom, you'd ask, "Wo ist die Toilette?" not "Wo ist das Badezimmer?"
If any of this is wrong, hopefully someone will correct me.