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Kill fee calculator

A client cancels partway through the work. This works out what to invoice: the value of the work you already did, a kill fee on the part you have not billed yet, and what a deposit already paid covers.

your honest estimate of hours or deliverables done
from your cancellation clause; 25% is a common default
credited against the amount owed
A kill fee compensates you for the time you set aside and the work you turned down to hold this slot. It applies to the part of the fee you have not billed yet, not the whole project, so it sits on top of the work already done rather than replacing it.
Amount to invoice now
—
Work completed, value—
Kill fee on the remaining fee—
Total owed before the deposit—
Deposit already credited—
Share of the full fee you keep—
A cancellation notice you can send with the invoice

What you would be owed at each stage of the project

Stage cancelledOwed before depositAmount to invoice
These rows use the kill fee percentage and deposit above, held fixed, and vary only how much of the project was done when the client cancelled.

Why a kill fee is not the same as billing for hours worked

Billing for the hours you logged only covers work already delivered. A kill fee covers something else: the slot you held on your calendar and the other work you turned down to keep it clear. When a client cancels with no notice, that time is gone and cannot be resold on short notice, so the fee compensates for the lost opportunity, not just the finished deliverables.

Take a 6,000 project cancelled 40 percent through, with a 25 percent kill fee and a 1,000 deposit already paid. The work completed is worth 2,400. The remaining 3,600 has not been billed, and a 25 percent kill fee on that is 900. Together that is 3,300 owed, and with the 1,000 deposit credited, 2,300 is due on the final invoice. Without the kill fee clause, the freelancer would only be able to bill the 2,400 for work done and would absorb the rest of the lost booking.

Setting the kill fee percentage before you need it

The percentage belongs in the contract, agreed before the project starts, not negotiated after a cancellation email arrives. A flat 25 percent on the unbilled balance is a reasonable default for most solo freelance work. Higher figures, up to 50 or even 100 percent, suit short-notice cancellations close to a fixed delivery date, when there is no realistic way to fill the gap with other work. Use the stage table above while you draft the clause: if a client cancelling early would still leave you short, the percentage needs to go up.

The deposit is not the kill fee

A deposit is money paid up front against the project total. A kill fee is a separate charge for cancelling. They interact, because most contracts credit the deposit against whatever is owed on cancellation, but they answer different questions: the deposit protects your cash flow at the start, the kill fee protects the value of the slot if the project ends early. If your contract already says deposits are non-refundable, a cancellation that lands below the deposit amount usually means you keep the deposit and invoice nothing further, which the note above states plainly rather than showing a negative figure.

Write both terms into the same clause so there is nothing to argue about later. The contract clause library has a ready-to-paste kill fee and cancellation clause, and the quote builder and scope of work generator both have a line for the deposit so it is on the paperwork from day one.

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For complex or high-value work, a lawyer-drafted contract template or a quick review is worth the cost. See our recommended contract templates & review services →

Frequently asked questions

Is a kill fee legally enforceable?

In most places, yes, provided it is written into the contract before the work starts and is a reasonable estimate of your loss rather than a punitive number designed to scare the client. A court asked to look at an unreasonably high fee with no relation to actual loss may reduce it. Keep the percentage defensible and put it in writing.

What if the contract has no cancellation clause?

Then you can usually only bill for the work actually completed, at your agreed rate, and you have no automatic right to compensation for the lost booking. This is the case for adding a kill fee clause to every contract before the work starts, not after a client asks to stop.

Does the kill fee apply if I am the one who ends the project?

Not normally. Kill fees compensate the freelancer for a client-initiated cancellation. If you are the one stepping away, most contracts only entitle you to payment for work completed, and a good one also sets out what you hand over.

Should the deposit be refundable?

Most freelance contracts make the deposit non-refundable once work has started, since it is what let you turn down other work to take the booking. Some freelancers refund it in full only if the client cancels before any work begins. Decide the rule in advance and state it in the same clause as the kill fee.

How is this different from late payment interest?

Late payment interest charges a client who is slow to pay an invoice that is otherwise due. A kill fee applies when the project itself ends early, on work that was never going to be invoiced under the original schedule. Use the late payment calculator once an agreed invoice, including a cancellation invoice, goes overdue.