How to charge a kill fee: what it is, how much, and what to say to the client
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.
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.
Step 2: When to charge a kill fee
The client cancels the project, the client significantly changes the scope (making the original work unusable), or the client disappears mid-project.
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 — for example: "Cancellation before 50% completion: 30% kill fee. Cancellation after 50% completion: 50% kill fee."
Step 4: What to say to the client
"I'm sorry to hear the project won't continue. As outlined in our agreement, the cancellation at this stage incurs a kill fee of [X%]. I've attached the invoice for the remaining balance."
Our Pro templates include a kill fee clause ready to use. If you're just starting out, include a simple version even in free contracts — it shows professionalism and sets expectations.
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