Question 1

What is a typical kill fee percentage?

Accepted Answer

Industry standard is 25-50% of the total project fee, scaled by how far the project has progressed. At the proposal-accepted phase, 25% is common. By mid-project, 50% is standard. Near delivery, kill fees can reach 75-90% because the freelancer has absorbed nearly all the time cost and produced most of the deliverables. Design, writing, video, and software all fall in the 25-50% baseline range, with video and software trending higher because their work products are less reusable.

Question 2

Should I always include a kill fee clause in contracts?

Accepted Answer

Yes. A kill fee clause protects both parties. For the freelancer, it guarantees compensation for blocked calendar time and work performed. For the client, it sets clear expectations and prevents ugly disputes later. Contracts without kill fees often end in lose-lose scenarios where the freelancer is stiffed and the client feels guilty. Build a simple table into your Statement of Work showing the kill fee at each milestone (for example, 25% at proposal accepted, 50% at milestone 2, 75% at final review). Review it with the client at signing so nothing is a surprise.

Question 3

How do I calculate opportunity cost for a cancelled project?

Accepted Answer

Opportunity cost represents the revenue you could have earned by taking other work during the blocked period. A reasonable proxy is 20-25% of the total project fee at the start (when almost no work is done but you blocked the time) declining to 5-10% near delivery (when most of the time has been converted to deliverables). This calculator applies a phase-based multiplier to approximate this. If you turned down specific alternative work, you may be able to claim that revenue as actual damages instead.

Question 4

Can the client refuse to pay the kill fee?

Accepted Answer

Only if the clause was not in the signed contract or if the cancellation was due to your breach (missed deadlines, poor quality, etc.). If the kill fee is documented and the cancellation was at the client's discretion, you have a legal right to collect. Small claims court handles these disputes routinely for amounts under $10,000. Always get a signed contract with the kill fee table before starting work, and invoice promptly after cancellation with a detailed breakdown of completed work plus the contractual kill fee.

Question 5

What if I already received a deposit?

Accepted Answer

Most freelancers take a 25-50% deposit at project start. This deposit should be non-refundable and counts toward the kill fee. If the calculated kill fee equals $5,000 and you already hold a $2,500 deposit, you invoice the balance ($2,500). If the kill fee is less than the deposit, industry norm is to keep the full deposit anyway because you blocked the calendar time. Make this explicit in the contract: "Deposit is non-refundable and applies toward any kill fee owed."

Question 6

Should I hand over work-in-progress files after a kill fee is paid?

Accepted Answer

Yes, once the kill fee is paid in full, you typically hand over completed work products associated with the paid portion. Write this into the contract: "Upon payment of kill fee, freelancer will deliver all completed deliverables and raw files for paid portions of the project." Do not hand over files before payment clears. For design and writing, partial handover is workable; for video and software, handover of incomplete builds is often impractical and the contract should say so.

Kill Fee Calculator

What Is a Kill Fee and When Does It Apply?

Industry Standards by Phase

How the Formula Works

When to Use This Calculator

Example Scenarios