You are halfway through a project, the work is going well, and the client emails to say they are pulling the plug. Priorities changed, the budget got cut, or they simply changed their mind. Without the right clause, you have spent days on work you may never be paid for. A kill fee is the protection that stops a cancelled project from becoming free labor. Here is what a kill fee is, why freelancers need one, how much to charge, and the exact wording to put in your contract.
What a kill fee is
A kill fee is a payment a client owes if they cancel a project before it is finished. The term comes from publishing, where an editor who commissioned an article but decided not to run it still paid the writer a portion of the agreed fee. The same idea protects any freelancer whose work can be called off partway through.
It is not a penalty. It is compensation for the time you committed, the work you have already done, and the other jobs you turned down to take this one. When a client cancels, that time does not come back, and a kill fee makes sure you are not the only one absorbing the cost of their decision.
Why freelancers need a kill fee
Without a kill fee, a cancellation leaves you with two bad options: eat the loss, or fight for payment you never explicitly agreed on. A kill fee removes the ambiguity by settling, in advance, what happens if the project ends early.
It does two useful things at once. It protects your income, guaranteeing you are paid for committed time even if the deliverable is never used. And it makes clients more considered about cancelling, because a decision with a cost attached gets weighed more carefully than one without. That is not about trapping clients, it is about making sure a change of heart on their side does not land entirely on yours. A kill fee is one piece of the wider protection a contract gives you, alongside the clauses in the essential elements of a freelance contract.
How much a kill fee should be
There is no single rate, but a few common approaches work well depending on how the project is structured.
A percentage of the total fee is the simplest: 25% to 50% of the project value is a typical range, with the higher end for work that is further along or harder to resell. A non-refundable deposit can act as a built-in kill fee, since the client has already paid it and you keep it if they cancel. And for milestone or stage-based work, the fairest approach is often payment for all completed stages plus a portion of the current one. Whichever you choose, tie the amount to how far the work has progressed, so a cancellation on day one costs less than one the day before delivery. The goal is to be compensated fairly for what you have done and committed, not to punish the client.
Sample kill fee clause
Keep the wording plain and specific. A clause like this covers the essentials:
Kill fee: If the Client cancels the project before completion, the Client agrees to pay a kill fee equal to 50% of the total project fee, plus payment in full for any work completed beyond that point. Any deposit already paid is non-refundable and will be credited toward the kill fee.
Adjust the percentage and structure to fit your work, but keep the two parts: a defined fee for the cancellation, and payment for work already done. Stated clearly up front, it is rarely a point of friction, because the client agreed to it before there was ever a project to cancel.
Make it part of a signed contract
A kill fee only protects you if it was agreed before the work began, which means it has to live in a contract the client signed, not in an email you send after they cancel. Adding it after the fact carries no weight. FileCurrent gives you contract templates you can set your kill fee and cancellation terms in, signed with a legally binding e-signature before the project starts, so the protection is in place from day one.
If a client does cancel and the terms are not being honored, the guide on how to cancel a freelance contract and handle disputes covers what to do next.
Frequently asked questions
What is a kill fee in freelancing?
A kill fee is a payment a client owes if they cancel a project before it is finished. It compensates you for the time you committed and the work already done, so a cancelled project does not become unpaid labor. The term comes from publishing but applies to any freelance work that can be called off partway through.
How much should a freelance kill fee be?
Commonly 25% to 50% of the total project fee, with the higher end for work that is well underway or hard to resell, plus payment for any completed work. A non-refundable deposit can serve the same purpose. Tie the amount to how far the project has progressed so it stays fair to both sides.
Is a kill fee the same as a deposit?
Not quite, though they overlap. A deposit is paid up front to secure the work, while a kill fee is what you keep or are owed if the project is cancelled. A non-refundable deposit can act as a built-in kill fee, and many contracts credit the deposit toward the kill fee if a cancellation happens.
Do I need a kill fee if I already take a deposit?
A deposit covers the start of the work, but on a larger project you may have done far more than the deposit by the time a client cancels. A kill fee clause ensures you are compensated for that additional committed time, not just the initial deposit. The two work well together.
How do I add a kill fee to my contract?
Include a clause stating the fee for cancellation and payment for completed work, and get the client to sign the contract before the project starts. A kill fee added after a cancellation has no force, so it must be agreed in advance. A contract template with a cancellation section makes it straightforward to set.
A kill fee turns a cancelled project from a loss into a manageable outcome, but only if it was signed before the work began. FileCurrent lets you build your kill fee into a contract and get it signed with a legally binding e-signature up front, then invoice the fee if a project is called off. $15/month or $129/year. 7-day free trial, no card required.