The Phenomenal Profit of 'Paranormal Activity': A Low-Budget Horror’s Record-Breaking Success
How a £45,000 budget turned Paranormal Activity into the most lucrative movie of all time.
The title of the most profitable film of all time goes to the 2007 horror sensation, Paranormal Activity. Thanks to its remarkably low budget and extraordinary box office success, the film achieved a staggering return on investment (ROI) of 19,758 per cent — far surpassing any other movie in history. To put this into perspective, the next most profitable film was the 2015 horror The Gallows, which managed an ROI of 6,843 per cent.
Produced on a shoestring budget of just £45,000, Paranormal Activity was made with minimal resources but had a clever marketing strategy that cost approximately another £300,000. Despite its modest production costs, it went on to gross over $89 million (£67 million) worldwide. This incredible financial return highlights how a simple concept executed well can generate enormous profits.
The film’s success was driven by its innovative use of found footage style and effective word-of-mouth promotion, which created a buzz that propelled it into cinemas and beyond. Its record-breaking ROI demonstrates how a small investment can lead to massive financial gains when the right elements come together.
Paranormal Activity’s story is often cited as a prime example of how low-budget filmmaking can achieve extraordinary results in Hollywood. It remains a benchmark for independent filmmakers and investors alike — proof that sometimes, less really is more when it comes to making a blockbuster hit.
