Definition
A kill fee is a payment owed to a freelancer or contractor when a client cancels a project partway through, compensating for work already done and time reserved. It is common in writing, photography, design, and media, and is usually a set percentage of the full fee written into the contract.
Also called: Cancellation fee, Termination fee
Kill fee in practice
Typical kill fees range from about 25 to 50 percent of the agreed fee, or a sliding scale based on how far the project had progressed. Invoice the kill fee promptly after cancellation, referencing the contract clause and the work completed.
Frequently Asked Questions
Can I charge a kill fee if it is not in the contract?
You can ask, and you can bill for work completed, but without a kill fee clause the client is less likely to agree. Add one to future contracts.
Does a kill fee replace my deposit?
It depends on the contract. Many contracts treat a non-refundable deposit as credited toward the kill fee, so you invoice only the difference. Spell this out in the cancellation clause to avoid disputes.
Related terms
- Deposit A deposit is a partial payment made before work begins or goods are delivered, typically 25 to 50 percent of the total.
- Fixed-price contract A fixed-price contract sets one total price for a defined scope of work, regardless of how many hours or how much material it actually takes.
- Scope of work A scope of work is a written description of exactly what a project includes: the deliverables, tasks, timeline, assumptions, and exclusions.
- Final invoice A final invoice is the last invoice issued on a project, sent when all work is complete.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.