Kill fee: getting paid when a client cancels

A kill fee is what the client pays if it cancels a project you have already started or reserved time for. Without one, "we decided not to go ahead" can mean weeks of unpaid work.

Updated 21 October 2026. General information, not legal advice.

The problem

Watch forThe Client may terminate this Agreement at any time, for any reason, with immediate effect.

Many client templates let the client walk away at any moment. Read it together with the payment clause: if payment is due only on final delivery or acceptance, a cancelled project may pay nothing at all.

What to ask for

Example wordingEither party may terminate this Agreement with ten (10) days' written notice. On termination by the Client for any reason other than the Contractor's material breach, the Client shall pay for all work done up to the termination date, any committed expenses, and a cancellation fee of 25% of the remaining fee.

How much

There is no standard amount. In publishing, kill fees of 25 to 50% of the fee are common; on project work, freelancers often ask for payment for work done plus a share of the remaining fee, sized to how hard the time is to fill. A deposit does the same job up front: if it is non-refundable, it covers the first part of the risk.

Termination for your side

Check that you can end the contract too: when the client does not pay, stops responding, or changes the project beyond the agreed scope. And check what happens to the rights in the work: they should pass only for the work the client pays for (see who owns the work).

This guide is general information, not legal advice. Rules differ between countries and states, and a clause that is common in one place can be unenforceable in another. For a high-stakes contract, ask a lawyer where you or your client are based.

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