Calculation details for Rana Daggubati

Step #1 - Historical movie details for Rana Daggubati

No Movie Year Tamilnadu Collection Domestic Collection Overseas Collection Total Collection
1 The Ghazi Attack 2017 17.10 50.20 6.00 56.20
2 Nene Raju Nene Mantri 2017 38.50 44.15 5.11 49.26

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 The Ghazi Attack
The Ghazi Attack release year
2017
2017 CPI value
156.235504088
Current CPI value
156.235504088
India collection in 2017
50.20 Cr
Inflation adjusted collection
(156.235504088 / 156.235504088 ) * 50.20 = 50.20Cr
Example overseas calculations for The Ghazi Attack
The Ghazi Attack 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
6.00 Cr = 6.00/67.69355 = $0.89MM
Present value of collection USD
(112.86148554565 / 112.86148554565 ) * 0.88634736987497 = $0.89 MM
Present value of collection INR
$0.89MM * 67.69355 = 6.00 Cr

Total The Ghazi Attack collection in 2017 = 50.20 + 6.00 = 56.20 Cr

Present value of The Ghazi Attack collection = 50.20 + 6.00 = 56.20 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 The Ghazi Attack 2017 17.10 50.20 6.00 56.20
2 Nene Raju Nene Mantri 2017 38.50 44.15 5.11 49.26

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 The Ghazi Attack 2017 56.20 1.00 56.20
2 Nene Raju Nene Mantri 2017 49.26 1.00 49.26
Total 2 105.46

Total expected collection for Rana Daggubati = 105.46/2 = 52.73 Cr