Film Budget Basics: Above-the-Line vs Below-the-Line Costs (Indian Indie Guide)

By Gireesh Shanbbhag, Actor | Filmmaker | Screen Writer | Editor · Published 2026-10-13

Producer calculating a film budget
Producer calculating a film budget

Quick answer: Above-the-line (ATL) costs are the creative leads whose fees are negotiated before production — writer, producer, director and principal cast — plus story rights. Below-the-line (BTL) costs are everything needed to physically make the film: crew, equipment, locations, sets, costumes, transport, food, post-production, music and insurance. Most budgets add a 5–10% contingency on top. The script breakdown and schedule drive the BTL numbers.

Key takeaways

  • The "line" historically separated negotiated creative fees from fixed production costs on the budget top sheet.

  • Below-the-line usually splits into production, post-production and other (insurance, legal, publicity).

  • Your number of shoot days is the biggest driver of BTL cost — schedule efficiently.

  • Always include contingency; something will go wrong.

What is above the line?

  • Story and screenplay rights

  • Writer's fee

  • Producer and executive producer fees

  • Director's fee

  • Principal cast fees

  • Travel and accommodation tied to those people (on some budgets)

What is below the line?

  • Production: crew wages, camera and lighting rentals, grip, sound, art department and sets, costume, makeup, locations and permissions, supporting cast and extras, stunts, SFX, transport, catering, accommodation, production office.

  • Post-production: editing, DI/colour grading, sound design and mix, VFX, music composition and recording, subtitles, deliverables (DCP, OTT masters).

  • Other: insurance, legal, accounting, censor certification, publicity, contingency.

How do you build a film budget from the script?

  1. Break down the script — every element tagged.

  2. Make the shooting schedule — number of days per location.

  3. Use the Day Out of Days to count cast days.

  4. Price each line item using quotes: rate × days or quantity.

  5. Add fringes (taxes, benefits, GST where applicable) and contingency.

  6. Summarise on a top sheet with ATL, BTL and total.

  7. Iterate: cut days, locations or effects until the total matches the money available.

How to structure a small Indian indie budget (INR)

The figures below are an illustrative structure for a small 20-day Kannada indie feature, not a quote. Real costs vary enormously by city, crew, cast and equipment.

ABOVE THE LINE — story & screenplay, director, producer, principal cast
BELOW THE LINE — PRODUCTION: crew, camera & lighting, art & sets, costume & makeup, locations, supporting cast, transport, food, accommodation
BELOW THE LINE — POST: edit, DI, sound, music, VFX, subtitles, DCP
OTHER: insurance, legal, certification, publicity
CONTINGENCY: 7–10% of total

On many micro-budget films, the producer-director-writer is the same person and defers their fee, which shifts the ATL share very low; the biggest line items become crew, equipment and post-production.

How can I reduce a film budget without hurting the film?

  • Reduce locations; rewrite scenes into places you already have.

  • Consolidate each actor's days to cut holds.

  • Shoot day exteriors in reliable seasons to avoid weather loss.

  • Limit night shoots, crowds, vehicles and VFX to scenes that need them.

  • Get firm quotes for post-production early; it is often underestimated.

Budgeting in Kathe Kaara

Kathe Kaara's Budget Lite module links budget categories to the breakdown elements in your script, separates above- and below-the-line, gives a running total that updates in real time, supports multiple currencies with INR as the default, and exports the budget to XLSX for your line producer or financier.

Frequently asked questions

Are actors above or below the line?

Principal cast is above the line; supporting actors, day players and extras are usually below the line.

What percentage of a budget is contingency?

Commonly 5–10% of the total budget.

Is music above or below the line?

Usually below the line in post-production, although a star composer's fee is sometimes negotiated like an ATL fee.

Who prepares the film budget?

The line producer or production manager, using the breakdown and schedule.

Cover photo: Producer calculating a film budget — by Towfiqu barbhuiya on Unsplash.