Blog/Budgeting

Above the Line vs Below the Line, Explained

Melike IşıkSeptember 4, 2026

In a film budget, above the line is the creative talent whose fees are negotiated individually: the writer, the producers, the director, and the principal cast. Below the lineis everything else: the crew, equipment, locations, and post-production, priced by the day, the week, or the unit. The split exists because the two halves are costed differently, and the ratio between them tells you what kind of film you are looking at.

These costs are set before the shoot is planned. A director's fee does not change if the schedule adds a day; a lead actor's deal is a negotiated number, not a day rate times a count (even if the contract is written in days). Because they are deals, they are usually the first numbers in a budget and the last to move.

Below-the-line costs are built from the breakdown and the schedule. Eighteen shoot days means eighteen gaffer days, eighteen location days, eighteen days of catering. Add a day and every below-the-line production line moves. This is the half of the budget that scheduling decisions control.

Above and below the lineAbove the line: story and rights, producers, director, principal cast. Below the line: production (crew, camera, lighting, sound, art, locations, catering, transport), post-production (edit, sound, color, music), and other (insurance, legal, contingency).Above the lineStory, rights, screenplayProducersDirectorPrincipal cast (and their fringes, travel)THE LINEBelow the line: productionCrew: camera, electric, grip, sound, art, wardrobe, H&MEquipment: camera, lighting, grip, sound packagesLocations, permits, transport, cateringExtras, stand-ins, day playersBelow the line: post-productionEditorialSound design and mixColor, VFX, titlesMusic and licensingBelow the line: otherInsuranceLegal and accountingContingency (10% minimum)Deliverables, festival, marketing
A film budget top sheet, with the line. Above it, four negotiated categories. Below it, everything that is a rate times a count.
CostSide of the lineWhy
Director’s feeAboveNegotiated deal
Lead actorAboveNegotiated deal, even if written in days
Day player (one scene)BelowPaid at a set day rate
ExtrasBelowPaid by the day, per head
Director of photographyBelowCrew, day or weekly rate
Camera packageBelowRental, rate × days
Location feeBelowRate × days
EditorBelow (post)Weekly rate
Music licensingBelow (post)Per cue or flat
Insurance, contingencyBelow (other)Percentage of the budget
Producer’s feeAboveNegotiated deal
Line producer / UPMBelowWeekly rate; runs the below-the-line

The line producer is the neat edge case: a producer by title, below the line by function, because they are paid a weekly rate to manage the below-the-line budget. The name is the job.

Two reasons, one historical and one practical.

The historical one is the studio top sheet. Budgets were summarized on a single page with the creative deals at the top and a ruled line under them. The people above the line were the ones the studio negotiated with; the costs below were what the production office estimated. The rule became the vocabulary.

The practical one is that the two halves behave differently. Above-the-line costs are fixed early and barely move. Below-the-line costs are driven by the schedule and move every time it does. Financiers read the split because it tells them what they are buying: a $2M film with $1M above the line is a star vehicle; a $2M film with $250K above the line is putting the money on screen.

Above-the-line share by production typeRange bars: micro-budget indie 5 to 15 percent; indie feature 10 to 25 percent; mid-budget studio 25 to 40 percent; star-driven studio 40 to 60 percent.Micro-budget indie5% to 15%Indie feature10% to 25%Mid-budget studio25% to 40%Star-driven studio40% to 60%
Above-the-line share of the total budget, by type of production. Indie features put most of the money below the line; star-led studio films invert that.
  1. Set above the line first, because those are deals and they are fixed. Know what is cash and what is deferred.
  2. Build below the line from the schedule, not from a template. Every production line is a rate times the day count. Our day rates guide has the rates; the schedule has the count.
  3. Put post and other in their own sections. Post is 15 to 25 percent of an indie budget; contingency is 10 percent of the subtotal. Neither belongs hidden in production.
  4. Read the ratio. If above the line is over a third on an indie, check whether the money on screen is enough to make the film the deals imply.

For the full structure of a film budget and how to estimate each category, read How to Budget a Film. The free budget template is laid out above and below the line, with Nightfall's numbers filled in as an example.

What does "the line" refer to in a film budget?

A literal line on the traditional studio budget top sheet. Above it sat the creative deal-makers whose fees were negotiated individually: story, producer, director, principal cast. Below it sat everything priced by the day or the unit. The layout survived; the line became the vocabulary.

Is the director above or below the line?

Above. The director, the producers, the writer (story and screenplay), and the principal cast are the four classic above-the-line categories.

Are extras above or below the line?

Below. Extras, stand-ins, and day players are usually below the line because they are paid by the day at a set rate. Principal cast with negotiated deals are above it.

What is a typical above-the-line percentage?

On indie features, 10 to 25 percent of the total. On studio films with star salaries it can pass 50 percent. The ratio is a quick signal of what kind of film a budget describes.

Does post-production count as below the line?

Yes. Post is below the line, usually as its own section after production, alongside "other" costs like insurance, legal, and contingency.

Melike Işık

Producer and co-founder of morrow. Writes about the unglamorous parts of pre-production.

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