Kill Fee
Agency glossary · Updated July 2026
Definition
A kill fee is a pre-agreed amount a client pays if they cancel a project after it has started but before it is finished. It compensates the agency for reserved capacity and work already done, and is written into the contract so cancellation does not mean working for free.
Why it matters
Without a kill fee, a cancelled project can leave the agency with unbillable hours and a hole in the schedule. A kill fee makes the client’s commitment real and protects your time.
Common structure
A percentage of the project fee, or payment for the phase completed plus a portion of the remainder, defined in the contract up front.
Related terms
See it in AgencyKit
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