The retail rate is the actual original retail value of the item being listed. The replacement rate is the amount reimbursed from apparel assurance (in the rare event the item is stolen or damaged beyond repair). So a $500 4 year old prom dress may now carry a $200 replacement rate. Lenders set both rates at their discretion and renters agree to this price as part of the exchange. Please use common sense when setting your replacement rate to "current" value of your item.