Calculation details for Vikram

Step #1 - Historical movie details for Vikram

No Movie Year Tamilnadu Collection Domestic Collection Overseas Collection Total Collection
1 Kanthaswamy 2009 23.75 34.25 9.30 43.55
2 Raavanan 2010 24.75 39.25 10.50 49.75
3 Deiva Thirumugal 2011 25.40 34.14 7.93 42.07
4 Thaandavam 2013 16.50 22.00 4.00 26.00
5 10 Endrathakulla 2015 13.50 20.50 4.90 25.40
6 Irumugan 2016 37.00 61.75 22.72 84.47
7 Sketch 2018 20.35 25.20 3.55 28.75

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)
2009 10.87739112 89.29185556
2010 11.99229692 100
2011 8.857845297 108.8578453
2012 9.312445605 118.9951729
2013 10.90764331 131.9747419
2014 6.353194544 140.7504026
2015 5.872426595 147.6569875
2016 4.97 154.99553977
2017 0.8 156.235504088
Year US Inflation Rate US CPI (Consumer Price Index)
2009 -0.355546266 98.38641997
2010 1.640043442 100
2011 3.156841569 103.1568416
2012 2.069337265 105.2915045
2013 1.464832656 106.8338489
2014 1.622222977 108.5669321
2015 0.118627136 108.695722
2016 1.3 110.108766386
2017 2.5 112.86148554565
Year Average US Dollar to Indian Rupees Exchange Rate
2009 47.4166
2010 45.5768
2011 47.9229
2012 54.4091
2013 60.936
2014 63.469
2015 64.20012
2016 67.26527
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 Kanthaswamy
Kanthaswamy release year
2009
2009 CPI value
89.29185556
Current CPI value
156.235504088
India collection in 2009
34.25 Cr
Inflation adjusted collection
(156.235504088 / 89.29185556 ) * 34.25 = 59.93Cr
Example overseas calculations for Kanthaswamy
Kanthaswamy release year
2009
2009 CPI value
98.38641997
2009 USD to INR exchange rate
47.4166
Current CPI value
112.86148554565
Current USD to INR exchange rate
67.69355
Overseas collection in 2009
9.30 Cr = 9.30/47.4166 = $1.96MM
Present value of collection USD
(112.86148554565 / 98.38641997 ) * 1.9613384342192 = $2.25 MM
Present value of collection INR
$2.25MM * 67.69355 = 15.23 Cr

Total Kanthaswamy collection in 2009 = 34.25 + 9.30 = 43.55 Cr

Present value of Kanthaswamy collection = 59.93 + 15.23 = 75.16 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 Kanthaswamy 2009 41.56 59.93 15.23 75.16
2 Raavanan 2010 38.67 61.32 17.60 78.92
3 Deiva Thirumugal 2011 36.45 49.00 12.26 61.25
4 Thaandavam 2013 19.53 26.04 4.69 30.74
5 10 Endrathakulla 2015 14.28 21.69 5.36 27.06
6 Irumugan 2016 37.30 62.24 23.44 85.68
7 Sketch 2018 20.35 25.20 3.55 28.75

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 Kanthaswamy 2009 75.16 1.00 75.16
2 Raavanan 2010 78.92 1.00 78.92
3 Deiva Thirumugal 2011 61.25 1.00 61.25
4 Thaandavam 2013 30.74 1.00 30.74
5 10 Endrathakulla 2015 27.06 1.00 27.06
6 Irumugan 2016 85.68 5.00 428.40
7 Sketch 2018 28.75 2.00 57.50
Total 12 759.03

Total expected collection for Vikram = 759.03/12 = 63.25 Cr