A movie budget can be divided into four sections: Above the line (creative talent), below the line (direct production costs), post-production (editing, visual effects, etc.), and other (insurance, completion bond, etc.). When you make a movie you have to pay for stuff like story rights (if it is based on a novel or comic), a screenwriter, director, producers, the cast, the studio, costumes, music, equipment, visual effects, etc. Budgeting a movie would be really difficult lol.
In film-making, budgeting is important. There are mainly three components in a film budget:
(1) Above the Line Cost
This includes paying the director, script writer, producer and cast members. Often times these fees are negotiated in a proportional manner with one another.
(2) Fixed Costs
There are certain costs in film-making that are almost invariable. This includes costs for locations, costumes, sets, permits, equipment rentals and so on. The cost of rolls of tape should also be taken into account.
(3) Bond Money
This includes the cost of insurance and completion bonds, which is a part of risk management.
Two main factors that determine the budget are the medium and length of the film. A typical budget for a 35mm film can be grabbed from the second link, shown below.
There are professionals who can assist with film budgeting. Moreover, software like Excel and EP’s Movie Magic has made life easier.
Movies are budgeted based on many things. A good budget means great quality work. The budgetwill really speak for itself. The first thing a viewer can do is see how well the budget was spent. Movie budgets are developed from options and choice, depending on the details such as: location, props, size of production, leading and non-leading cast members, duration of filming time, and local fees. The director usually plans out most of the details to get the figures as close as possible before they start dishing out major dollars. Staff fees and script must be obtained before anything else.
The movie budget would most likely include all of the following necessities: The actor's budget and how much they would get paid. How much travel and accommodations would cost esp. if they are shooting overseas. Props, Sponsors, the plot and script as well as post production matters. Music, equipment, costumes, there are many different aspects in the costs of movies.
The movie budget inclues the hiring of actors, or creative talent, the actual film, which is part of production costs, the visuals of post production, and the insurance. Last but not least, the rights to screen the movie, the props in the set, the sponsors even would also affect the budget.
A movie budget is based upon a number of different factors. A lot of planning goes into making a movie, and many times things get either added in or taken out based upon what the movie's budget is. For example, big factors that must be included in a movie budget are paying everyone's salaries, from the actors to the writers to even the director, and paying for the technology to be used to actually make the movie. The cameras, the computers, the CGI technology, all the software that is needed, etc. As you can see, there are many, many factors that play into a movie budget, which is why it is planned out carefully to ensure the money is used properly.
Hope this helps!