What is a kill fee — and should my freelance contract have one?
The short answer
A kill fee is a payment owed to a freelancer when a client cancels a project after work has begun. It compensates for work already done and for the opportunity cost of holding the project slot. A commonly reported range among freelancers is 25–50% of the project fee, though the amount and trigger vary by agreement. Without a kill-fee clause in your contract, what you're owed for a cancelled project is whatever you've invoiced and whatever can be demonstrated as completed — a much less predictable situation.
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What kill-fee clauses typically do
A kill-fee clause defines the trigger (client cancellation or indefinite suspension), the amount (a flat fee, a percentage of the total project fee, or a percentage that steps up based on how far along the project is), and often the timing (how many days after cancellation the fee is due). Some clauses also specify that work completed up to the cancellation date is also billable separately from the kill fee.
Kill fees and termination-for-convenience clauses are related but distinct: a termination clause gives either party the right to end the contract; a kill-fee clause specifies what is owed when that right is exercised. A contract can have a termination clause without a kill fee — which is much less protective of the freelancer.
Why people worry
The scenario: a freelancer holds a project slot, turns down other work, and begins the project — then the client cancels halfway through. Without a kill fee, the freelancer may only be owed for work invoiced up to that point, with nothing for the reserved time or the work in progress. Clients in creative industries are often used to kill fees; others may not expect them unless the contract requires it.
What to look for in your agreement
- Whether a kill fee clause exists at all — it must be in the agreement to be clearly owed.
- The trigger — what constitutes a cancellation versus a pause, and how long a pause can last before the kill fee applies.
- The amount — flat fee, percentage of total, or a step-up schedule based on project progress.
- Whether work already completed is billable separately or rolled into the kill fee.
- The payment timeline — when the kill fee is due after cancellation.
Questions to ask before signing
- Ask the client to confirm whether a kill fee is included and what it covers.
- Ask the other party to clarify how a long "pause" is treated — whether it eventually triggers the kill fee.
- Confirm whether work completed up to cancellation is billable in addition to any kill fee.
- Consider having the agreement reviewed if a kill fee clause is missing and the project is large or requires reserved capacity.
Reading the actual document
The general rule tells you the baseline. Your agreement tells you what you’re actually being asked to sign — and the wording is what binds. Read the specific clauses in your document before you sign.
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Common questions
What kill-fee percentage is typical?
A commonly reported range among freelancers is 25–50% of the project fee, with higher percentages applying the further along the project is at cancellation. What a given client will agree to, and what the final clause says, varies by agreement.
What if the contract has a termination clause but no kill fee?
A termination clause alone gives the client a clean exit without specifying what's owed. Without a kill-fee clause, you would generally be owed for work invoiced up to termination — but not a set amount for the cancelled remainder. Adding a kill fee to a termination clause is a standard negotiation point.
No account required · File deleted after analysis · Not legal advice. Dang reports contract findings in plain English — general information, not legal advice about your situation. For consequential decisions, consult a licensed attorney in your state.