How to measure the success of a film? Simply calculating your box office earnings is one way to do it. But that puts all films – regardless of scale or size – into one category. However, many trade analysts believe it is unfair to pit an independent film with a $10 million budget against a studio costing $250 million. To this end, many use the measure of profitability – how much a film earns in proportion to its budget. By this measure, a blockbuster 2007 film becomes the most successful film of all time, eclipsing even giants like TitanicAvatar, and Avengers Endgame.

The highest grossing film in the world

In 2007, filmmaker Oren Peli decided to make a low-budget horror film using a home camera and new actors. He used a handheld camera to minimize costs and cast SAG-affiliated actors at minimum wage. There was no real script and much of the film was improvised. Practical effects were used for the horror scenes. The end result was paranormal activity, produced on a shoestring budget of $15,000. After impressing audiences at film festivals, Paramount Pictures purchased the film, investing $200,000 for post-production and marketing.

Paranormal Activity was released theatrically in September 2009 and was a huge success, grossing a record $194.2 million worldwide. The film’s found footage format, odd cut, and freshness floored fans. The film’s 1,300,000% profit on its production budget remains a record that is almost impossible to beat. The success of Paranormal Activity spawned a franchise including three sequels and two spin-offs, collectively grossing over $600 million worldwide.

Why the stars of Paranormal Activity won peanuts

Oren Peli cast two newcomers in the film due to budgetary constraints. Katie Featherston and Micah Sloat were both struggling actors with no real notable work to show for it at the time. They saw the casting on LACasting and auditioned. Peli eventually hired them at minimum wage, and they ended up earning $500 each for their work. During an appearance on the Jay Leno Show in November 2009, the actors added that they had earned residual income from the film’s profits after its theatrical release two years later and had done good business.