Dealer fees are calculated as a percentage of the total cost including the fee, not simply a percentage of the system cost alone. This means the fee is built into the financed amount rather than added on top of it.
The Formula
To calculate the total cost with fees and the dealer fee amount:
Total Cost with Fees | = | System Cost ÷ (1 − Dealer Fee %) |
Dealer Fee Amount | = | Total Cost with Fees − System Cost |
Where the dealer fee percentage is expressed as a decimal between 0 and 1 (e.g. 24.79% = 0.2479).
It's calculated this way because the dealer fee has to be tagged onto the principal that is being financed — the fee itself needs to be financed along with the system cost.
Example: Full System Cost
System Cost | $25,967.50 |
Dealer Fee | 24.79% (0.2479) |
Step 1 — Total Cost with Fees:
$25,967.50 ÷ (1 − 0.2479) = $25,967.50 ÷ 0.7521 = $34,526.66
Step 2 — Dealer Fee Amount:
$34,526.66 − $25,967.50 = $8,559.16
Example: Adder-Specific Dealer Fee
The same formula applies when calculating dealer fees on an individual adder.
Adder Cost | $22,000 (e.g. a battery) |
Dealer Fee | 32.24% |
Step 1 — Total Cost with Fees:
$22,000 ÷ (1 − 0.3224) = $22,000 ÷ 0.6776 = $32,467.53
Step 2 — Dealer Fee Amount:
$32,467.53 − $22,000 = $10,467.53
For more information on how dealer fees display on the install tracker, see Dealer Fees Showing $0.00 on Install Tracker.