The kill fee is one of the most commonly missing protections in freelance contracts. It protects you from one of the most common and financially devastating things that can happen in freelance work — a client cancels mid-project after you've already done significant work.
What is a kill fee?
A kill fee (also called an early termination fee or cancellation fee) is a payment owed by the client if they cancel a project after work has begun. It compensates you for the time and opportunity cost of work already done and of turning away other clients to take this project. Kill fees are standard in advertising, publishing, film production, and increasingly in freelance services generally. The absence of a kill fee in a client contract is a significant red flag.
How much is a standard kill fee?
Kill fee amounts vary by industry and project size, but common standards are: 25–50% of the remaining contract value if cancelled before completion, or a sliding scale based on how much work has been completed. In advertising and publishing, 50% is common. For freelance services, 25% is often a reasonable starting ask. Some freelancers use a milestone-based approach — 100% of any completed milestone, plus 25% of remaining milestones. The key is that it's in writing before work begins.
What if the contract has no kill fee?
If your contract has no kill fee and the client cancels, your options are limited. You can pursue payment for work already completed if that's documented, or attempt to negotiate a settlement — but you have no contractual right to payment for work not delivered. This is why adding a kill fee before signing matters. Once a project is underway and the client has your work, your leverage to negotiate a cancellation payment drops significantly.
How to add a kill fee to a contract
The kill fee clause should appear in the termination section of the contract. A standard formulation: 'In the event Client terminates this Agreement prior to completion of the Services, Client shall pay Contractor a kill fee equal to [25%] of the remaining Contract value, in addition to payment for all work completed to date. This kill fee is due within [14] days of termination notice.' Always negotiate the kill fee before signing — asking for it mid-project is awkward and unlikely to succeed.
Kill fee vs. deposit: what's the difference?
A deposit is paid upfront before work begins and is credited toward the final payment. A kill fee is triggered only if the client cancels and compensates you for work already done and opportunity cost. Some contracts include both — a non-refundable deposit plus a kill fee on remaining value. A deposit protects you against non-payment; a kill fee protects you against cancellation after significant work has been completed.