What repeated cash advances cost over a year: three worked examples

The example is a pattern, not a prediction#

All figures are in Canadian dollars. Assume the same $100 advance twice each month, full repayment each time, no interest or tip, and a $5 charge per advance. These are hypothetical prices, not a claim about a particular app or a promise that repeated borrowing will be approved.

In the membership scenario, assume $12 is the full monthly amount you pay and that the subscription stays active. We do not model trial periods, a discounted annual plan, missed payments or changing prices.

You can change every assumption in the repeat-advance cost calculator. The calculator also accepts interest and tips when those apply.

What three, six and twelve months look like#

The third row has 24 advances over a year. Fees are 24 × $5 = $120. Membership is 12 × $12 = $144. Add those two amounts for $264.

The membership is not $12 for each of the 24 advances. That would count a monthly charge twice. Equally, repaying an advance does not automatically mean a subscription has ended. Check the cancellation process in the relevant product review.

Separate the amount borrowed from the cost#

In the twice-monthly example, 24 draws of $100 means $2,400 borrowed across the year and $2,400 of principal repaid. Add $264 in costs and the total outflow is $2,664.

That does not mean the reader owes $2,664 at one time. The scenario assumes each draw is repaid. It also does not mean borrowing creates $2,400 of extra income: those funds come with a repayment obligation.

This distinction helps when comparing two options. Keep one column for principal, one for fees and interest, and one for subscriptions. If the repayment is deducted from a deposit, budget the deduction before deciding how much of that deposit can be spent.

What remains from the next month’s pay?#

Take the third scenario and assume $2,400 in monthly take-home income and $2,000 in other bills and essentials. The two advance repayments total $210, including their fees. Membership adds $12. Income after those payments is $2,178; after the other essentials, $178 remains.

These monthly totals exclude new borrowing. They do not establish whether a bill on Tuesday can be paid before income arrives Friday. Use the daily budget planner for that timing question.

If the plan only balances when another advance arrives, review the pattern before assuming it can continue. Our repayment-difficulty guide explains how to ask about arrangements and find help.

Already paying for the membership?#

If you would keep the $12 membership regardless, the extra annual cost of the twice-monthly borrowing is $120. The full cost of the chosen setup is still $264. Both figures can be useful, as long as they answer different questions.

The calculator shows incremental cost separately and still subtracts the subscription from monthly income. Leave the subscription out of “other bills” so it is not deducted twice.

Start with your statements and actual agreements. The FCAC’s budgeting guide recommends tracking money coming in and going out. A repeating-cost scenario is a way to examine that pattern, not a forecast of how often you will need to borrow.

Common questions