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What is a kill fee? How to set one in a freelance contract

Published · Updated · Freelancing and getting paid

A kill fee is a payment the client makes if they cancel a project after you have started work. It compensates you for time you set aside and other work you turned down.

Kill fee or deposit?

A deposit is paid before work starts and is usually credited against the final invoice. A kill fee is only paid if the project is cancelled. Many freelancers use both: the deposit secures the booking and the kill fee covers a cancellation part-way through.

How much to charge

  • Writing and journalism: 25% to 50% of the agreed fee is common, depending on how far the piece had got.
  • Design and web projects: payment for work completed so far, plus a fixed cancellation fee or a percentage of the remaining fee.
  • Photography and events: usually handled through a non-refundable retainer tied to how close to the date the client cancels.

Whatever you choose, it should be a genuine estimate of your loss. In some places, a cancellation charge far above your real loss can be challenged as a penalty, and consumer protection rules may limit charges to private individuals.

Sample wording

If the Client cancels the project after work has started, the Client will pay for work completed to date plus a cancellation fee of {kill_fee}.

For writers paid per piece, a percentage works better:

If the Client cancels a piece after writing has started, the Client will pay {kill_fee_percent}% of its fee.

Templates that include it

The free graphic design contract and freelance writing contract include an optional kill fee you can switch on for each client.

General information, not legal advice.

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