What Is a Kill Fee? The Freelance Safety Net Most People Skip

A kill fee is a cancellation payment a client owes you when they terminate a project after work has begun. It compensates you for the time spent, the deliverables completed, and the opportunity cost of holding their slot — time you could not sell to someone else. Without a kill fee clause, a client can end a project the week before delivery, pay nothing for the completed work, and leave you with a gap in your schedule that is too late to fill.

How much to charge

Kill fees are typically expressed as a percentage of the remaining project fee or the total contract value. The right structure depends on how far into the project the cancellation happens:

• Cancelled before any work begins: 0 to 25% — or return the deposit with a small scheduling fee if you have already blocked time.
• Cancelled early, less than 25% complete: 25 to 50% of the remaining project fee.
• Cancelled mid-project, 25 to 75% complete: 50% of the remaining fee, or payment for all completed work at your hourly rate — whichever is greater.
• Cancelled late, more than 75% complete: 75 to 100% of the total project fee.

Many freelancers simplify this to a flat 25 to 50% of the total project value, which works well for shorter engagements. On longer projects, a tiered structure tied to percentage complete gives both sides a clearer outcome.

The contract clause

A kill fee only protects you if it is in the contract before the project starts. Here is language you can adapt:

• If the client cancels this project after work has commenced, a kill fee equal to [X%] of the total project fee — or [X%] of the fee for all work completed to the date of cancellation, whichever is greater — becomes immediately due and payable. Work commenced means any time logged, research conducted, or deliverables begun. Cancellation must be provided in writing. The deposit is non-refundable and may be applied toward the kill fee balance.

Keep the language specific. Vague terms like reasonable compensation or partial payment are easier to dispute than a defined percentage tied to documented work.

Kill fee vs. deposit: how they work together

A deposit and a kill fee serve different purposes. The deposit — typically 25 to 50% of the total fee, paid before work begins — secures your time and covers initial work. The kill fee protects the work completed after that point, the portion the deposit does not reach.

If a client cancels after you have completed 60% of a project and you have only received the upfront deposit, there is a significant gap between what you have done and what you have been paid. A kill fee clause closes it. The deposit is applied toward the kill fee balance; the remainder is invoiced separately.

When to invoke the kill fee

• The client cancels the project explicitly in writing.
• The client goes silent for more than 30 days with no confirmed restart date — an open-ended pause is a cancellation.
• The client changes the brief so substantially after work has started that it effectively restarts the project.
• The project stalls because the client has not delivered required materials, approvals, or access despite follow-up.

When you send the kill fee invoice, reference the specific contract clause and itemize the completed work. Do not send a vague remaining balance invoice — a detailed invoice tied to documented work is far easier to collect on. If you track your hours even on flat-rate projects, you will have the records to support it if the client pushes back.