Kill fees protect sunk cost when clients terminate early.
11 min readWhat is a kill fee?
If a client stops a project halfway, you may lose:
- Hours already worked
- Future income you turned down
- Rush costs you already paid
A kill fee (often 25 to 50 percent of remaining contract, or all work to date plus a cancel fee) makes that fair.
This is a business term, not legal advice. Check your own agreement or advisor for big deals.
When VAs should use one
| Situation | Kill fee makes sense |
|---|---|
| Fixed-price website or setup project | Yes |
| Multi-week onboarding build | Yes |
| Small monthly retainer | Usually notice period instead |
| Hourly with weekly invoice | Bill hours worked; less need for kill fee |
Sample language (adapt, do not copy as legal advice)
If Client cancels before completion, Client pays for all completed milestones plus [X%] of remaining project fee. Work delivered to date is invoiced within [7] days of cancel notice.
Add to proposal or contract. Client signs or replies "agreed."
If they cancel anyway
- Send written summary of work completed with dates.
- Invoice per your kill fee clause.
- Deliver files already paid for only.
- Save all threads.
Stay calm. You agreed terms upfront.
Common mistakes
| Mistake | Result |
|---|---|
| No termination clause | You eat sunk cost |
| Kill fee only verbal | Hard to enforce |
| 100% upfront with no milestone proof | Disputes on what was "done" |
| Waiving fee to be nice | Trains clients to cancel free |
How Salag helps
- Request Clarifier: clear milestones before kill fee math.
- Client Red Flag Checklist: clients who balk at fair cancel terms.
- Payment Method Risk Check: get paid if they dispute kill fee.
Move safer. Not faster.
In short
A kill fee is what the client pays if they cancel early. It covers work you already did and time you blocked on your calendar.
Put it in writing before the project starts. Not after they ghost.
Common questions
A kill fee is what the client pays if they cancel early. It covers work you already did and time you blocked on your calendar. Put it in writing before the project starts. Not after they ghost.
Define what happens if the client cancels mid-project: what you keep, what you deliver, and how much is due for work already done.
State kill fee in the proposal in plain English. It is normal for project work, not a fight starter.
For fixed-price projects, yes. Retainers usually use notice period instead.
Explain you block calendar and turn down other work. Kill fee covers sunk time if they cancel.
Document scope and milestones so kill fee math is obvious, not argued from memory.
When client cancels and refuses to pay for completed milestones. Send written invoice for kill fee amount in terms.
Yes. Proposal or contract with kill fee clause plus milestone emails prove what was done.
Agreement builder includes termination sections you can adapt.
Milestone invoices, time logs, written scope, agreement templates.
Five minutes to add kill fee line to proposal before signing.
Projects use kill fee or percent of remaining. Retainers use 2-week notice and pay for hours worked.
Do not start without agreed termination terms on fixed projects.