Is this a good rule of thumb for calculating a film's profit/loss?

[johnboy3434]

Obviously, Hollywood being Hollywood, it's unlikely that we'll ever see full financials for any film worth looking at. As such, if we're trying to ballpark a movie's profit/loss margin, there's a good deal of guesswork involved. Looking around the internet, I put these rules of thumb together. Would this give one a roughly accurate idea of a given movie's financial situation?

 

Production Budget x 1.5 = Total Budget

Domestic Gross x 0.55 = Domestic Studio Take

Foreign Gross / 3 = Foreign Studio Take

Domestic Studio Take + Foreign Studio Take - Total Budget = Profit

[The Panda]

On April 9, 2016 at 11:09 PM, johnboy3434 said:

Obviously, Hollywood being Hollywood, it's unlikely that we'll ever see full financials for any film worth looking at. As such, if we're trying to ballpark a movie's profit/loss margin, there's a good deal of guesswork involved. Looking around the internet, I put these rules of thumb together. Would this give one a roughly accurate idea of a given movie's financial situation?

 

Production Budget x 1.5 = Total Budget

Domestic Gross x 0.55 = Domestic Studio Take

Foreign Gross / 3 = Foreign Studio Take

Domestic Studio Take + Foreign Studio Take - Total Budget = Profit

 

Rule of thumb is if it doubles the production budget, assuming VOD, DVD and BluRay sales cover advertising costs (as a movie that's able to to double it's production budget should be able to cover the extra costs from its sales)

 

It's a film by film thing though as some films have had notoriously high ad budgets that still left the film near the red zone (MOS is an example I believe).

 

Generally though, if a film doubles the production budget you can assume Itll at least break even in the end.