Key Points in This Guide
- 1What a kill fee is and why it matters
- 2How to calculate a fair kill fee percentage
- 3Different kill fee structures: flat rate vs sliding scale
- 4How to phrase kill fee language in your contract
- 5What happens when a client refuses to pay a kill fee
- 6How kill fees differ from project deposits
A kill fee is your financial protection when a client cancels a project after work has already begun. Without one, you can spend weeks on a project and receive nothing when the client changes their mind, runs out of budget, or simply disappears. Understanding how kill fees work — and insisting on including one — is one of the most important steps any freelancer can take to protect their income.
Kill Fee Standards by Project Type
Kill fees are not one-size-fits-all. The right percentage depends on how much work has already been done, how hard it will be to replace the client, and industry norms for your sector. The table below shows standard kill fee structures across common freelance project types.
| Project Type | Cancellation Before Start | Cancellation Mid-Project | Post-Delivery Cancel |
|---|---|---|---|
| Writing / copywriting | 25% of total fee | 50% of remaining fee | 100% — work delivered |
| Logo / brand design | 25–30% of total fee | 50–75% (creative work intensive) | 100% — work delivered |
| Web development | 25% or 1st milestone | All completed milestones + 25% | 100% — work delivered |
| Video production | 30–50% (pre-production costs) | 50–75% of total | 100% — work delivered |
| Photography | 25% of booking fee | 50% if cancelled < 48 hrs | 100% — shoot complete |
| Consulting / strategy | 0–25% | Hourly for time worked + 25% | 100% — report delivered |
| Software / SaaS dev | 25% or sprint 1 cost | All sprints done + 25% | 100% — milestone delivered |
How to Include a Kill Fee in Your Contract
The best kill fee clause is explicit about the trigger (cancellation by client), the calculation method (percentage of remaining fees or of total contract value), and the payment timeline (due within X days of cancellation notice). Vague kill fee language — "a reasonable cancellation fee" — is often worthless because "reasonable" is subjective and clients will dispute it.
Include a deposit structure alongside the kill fee. A non-refundable deposit of 25–50% upfront serves a different purpose from a kill fee: the deposit secures your time before work begins; the kill fee compensates you for work started and not completed. Both together give you maximum financial protection.
💬 Template kill fee clause to add to your contract
CANCELLATION FEE. In the event Client cancels this Agreement after work has commenced: (a) If cancelled before delivery of any milestone: Client shall pay a cancellation fee equal to twenty-five percent (25%) of the total Project Fee. (b) If cancelled after delivery of one or more milestones: Client shall pay (i) 100% of all fees associated with completed milestones, plus (ii) a cancellation fee of fifty percent (50%) of the fees associated with any in-progress milestones. (c) Cancellation fees are due within fifteen (15) days of written notice of cancellation. The deposit paid under Section [X] shall be credited toward any cancellation fee owed.
What to Do When a Client Refuses to Pay the Kill Fee
If the kill fee clause is in a signed contract, non-payment is a breach of contract. Your first step is a formal written demand: send an email or letter citing the specific clause and the amount owed, with a payment deadline (typically 10–14 business days).
For amounts up to $5,000–$10,000 (depending on your state), small claims court is an efficient and inexpensive option. You do not need an attorney. File in the county where your contract specifies jurisdiction (or your home state if not specified). Judges regularly enforce clear, written kill fee clauses against clients who refuse to pay.
For larger amounts, demand letters from attorneys often resolve disputes quickly. A $300 attorney letter is often enough to prompt payment on a $5,000 kill fee claim, because the client knows litigation will cost them far more.
💡 Document everything when a project looks like it might be cancelled
The moment a client starts going quiet, missing calls, or sending signals of cancellation, start documenting: save all emails, record all hours worked, take screenshots of work in progress. If the cancellation eventually comes, your documentation is the evidence you need to enforce the kill fee. "I wasn't sure it was really cancelled so I kept working" is not an effective argument — document the cancellation trigger in writing as soon as it happens.
Have a contract to review?
Upload your contract now and get an AI risk analysis in under 90 seconds.