Calculation details for Chiranjeevi

Step #1 - Historical movie details for Chiranjeevi

No Movie Year Tamilnadu Collection Domestic Collection Overseas Collection Total Collection
1 Khaidi No. 150 2017 117.00 140.40 26.07 166.47

Step #2 - Adjust collections based on inflation rate

We all know that movie ticket prices aren't what they used to be. The cost of consumer goods and services rise each year. So, taking inflation into account is the only way to meaningfully compare the box office collection of movies over time. Ideally we should use India inflation rate for adjusting box office collection in India and inflation rate from respective countries for overseas collection. For simplicity, our calculations assume US inflation rate as the basis for adjusting the box office collection of all overseas countries. We also take into account the currency rate change over a period of time to accurately calculate the present box office collection values of historical movies.

Step #2a - Collect data to calculate inflation (courtesy www.worldbank.org, www.wikipedia.org/)

Year India Inflation Rate India CPI (Consumer Price Index)
2017 0.8 156.235504088
Year US Inflation Rate US CPI (Consumer Price Index)
2017 2.5 112.86148554565
Year Average US Dollar to Indian Rupees Exchange Rate
2017 67.69355

Step #2b - Apply inflation

Present box office collection value of historical movies is calculated by using a simple formula:

Collection(y) = ( CPI(y) / CPI(x) ) * Collection(x)

where "x" represents historical CPI and box office collection values and "y" represents current values.

Example domestic calculations for Khaidi No. 150
Khaidi No. 150 release year
2017
2017 CPI value
156.235504088
Current CPI value
156.235504088
India collection in 2017
140.40 Cr
Inflation adjusted collection
(156.235504088 / 156.235504088 ) * 140.40 = 140.40Cr
Example overseas calculations for Khaidi No. 150
Khaidi No. 150 release year
2017
2017 CPI value
112.86148554565
2017 USD to INR exchange rate
67.69355
Current CPI value
112.86148554565
Current USD to INR exchange rate
67.69355
Overseas collection in 2017
26.07 Cr = 26.07/67.69355 = $3.85MM
Present value of collection USD
(112.86148554565 / 112.86148554565 ) * 3.8511793221068 = $3.85 MM
Present value of collection INR
$3.85MM * 67.69355 = 26.07 Cr

Total Khaidi No. 150 collection in 2017 = 140.40 + 26.07 = 166.47 Cr

Present value of Khaidi No. 150 collection = 140.40 + 26.07 = 166.47 Cr

Step #2c - Calculate present value of collection based on inflation for all movies

No Movie Year Inflation Adjusted Tamilnadu Collection Inflation Adjusted Domestic Collection Inflation Adjusted Overseas Collection Inflation Adjusted Total Collection
1 Khaidi No. 150 2017 117.00 140.40 26.07 166.47

Step #3 - Calculate expected collection based on weightage

For calculating expected collection for an actor, we give appropriate weightage to the movies based on several factors. The weighted average is used to calculate the expected collection of an actor.
No Movie Year Inflation Adjusted Total Collection Weightage Collection * Weightage
1 Khaidi No. 150 2017 166.47 1.00 166.47
Total 1 166.47

Total expected collection for Chiranjeevi = 166.47/1 = 166.47 Cr