How to charge a kill fee: what it is, how much, and what to say to the client
By Contracts Specialist
Updated: May 16, 2026
Kill fees protect your time when a client cancels. Here's how to include one.
A kill fee is a payment you receive when a project is cancelled before completion. It compensates you for the time and opportunity cost of work already started. Without one, a cancelled project means zero income for hours you have already invested — and worse, it blocks your calendar from taking on replacement work because you were expecting to finish the original project.
Kill fees are standard in creative industries. Photographers charge them when shoots are cancelled. Designers charge them when branding projects are abandoned. Developers charge them when builds are halted. The principle is the same: if you have turned down other work to commit to this client, and the client cancels after you have invested significant time, you deserve compensation. This guide covers how much to charge, when to enforce it, and exactly what language to use in your contract and with your client.
Step 1: How much should a kill fee be?
Most freelancers set it at 25–50% of the total project value, depending on when the cancellation happens. Earlier cancellations = lower kill fee. Work that's nearly done deserves higher compensation. A common structure: cancellation before 25% completion: 25% kill fee. Cancellation before 50% completion: 35% kill fee. Cancellation after 50% completion: 50% kill fee. This sliding scale is fair to both parties: the client pays less if they cancel early (when you have invested less time), and you are compensated more if they cancel late (when you have turned down other work and invested heavily).
Step 2: When to charge a kill fee
The three most common triggers are: (1) The client cancels the project entirely — not just pauses it. (2) The client significantly changes the scope, making the original work unusable. This is effectively a cancellation of the original project and the start of a new one. (3) The client disappears mid-project and stops responding for an extended period (typically 30+ days without communication). In all three cases, the kill fee compensates you for time you cannot recover.
Step 3: How to include it in your contract
Add a "Cancellation and Kill Fee" clause. State that if the client cancels after work has begun, a kill fee of X% applies. Specify what percentage triggers at what stage. Example language: "If the Client cancels this agreement after work has commenced, a kill fee shall apply as follows: cancellation before 25% completion: 25% of the total fee; cancellation before 50% completion: 35% of the total fee; cancellation after 50% completion: 50% of the total fee. The kill fee is due immediately upon cancellation and is separate from payment for all work completed to date." This language is clear, specific, and enforceable in most jurisdictions.
Step 4: What to say to the client
When a client cancels, reference the clause calmly and professionally. Do not apologise for enforcing your contract. Example: 'I'm sorry to hear the project won't continue. As outlined in Section 7 of our agreement, cancellation at this stage incurs a kill fee of 35% (£X). I've attached the invoice for the remaining balance, which includes the kill fee plus payment for all work completed to date. Please let me know if you have any questions.' If the client pushes back, remain firm: 'I understand this is disappointing. The kill fee compensates for the time I invested in this project and the opportunity cost of turning down other work. It's a standard industry practice and was agreed upon when we signed the contract.'
Step 5: Common mistakes to avoid
Mistake 1: Not having a kill fee at all. Many freelancers worry it sounds 'negative' or 'aggressive.' It is neither — it is a standard business protection. Mistake 2: Making the kill fee too low. A 10% kill fee does not meaningfully compensate you for lost time. 25% is the minimum that most courts consider reasonable. Mistake 3: Not specifying when the kill fee triggers. 'If the project is cancelled' is vague — does that mean before work starts? After the first draft? Be specific. Mistake 4: Apologising when enforcing it. You are not doing anything wrong. You are enforcing a contract the client voluntarily signed.
Our Pro templates include a kill fee clause ready to use, with sliding-scale percentages and clear trigger points. If you are just starting out, include a simple version even in free contracts — it shows professionalism and sets expectations. The clients who object to a kill fee are often the same clients who cancel without notice.
The best protection against cancellation is requiring a 50% deposit before work begins. Clients who have already paid a deposit are far less likely to cancel — they have financial skin in the game. For large projects, consider milestone payments at 25% intervals so you are paid as you progress, not just at the end.
Protect yourself with the right contract
Download free, lawyer-reviewed templates or upgrade to Pro for all clauses.