Content Production Cost Calculator

Equipment Depreciation (WDV Method)

Equipment depreciation is a crucial concept for content creators. Instead of treating your camera, computer, or lighting as a one-time expense, depreciation spreads the cost over its useful life using the Written Down Value (WDV) method. Under the Income Tax Act, computers and laptops depreciate at 40% per year, while cameras, microphones, and video equipment depreciate at 15% per year. This is calculated on the reducing balance - Year 1 applies the rate to the original cost, Year 2 applies it to the remaining value, and so on. This is a legitimate business expense you can claim to reduce your taxable income.

Fixed vs Variable Costs

Understanding the difference between fixed and variable costs helps optimize your production budget. Fixed costs (team salaries, rent, subscriptions) remain constant regardless of content output, while variable costs (props, travel) change with production volume. Increasing content output helps distribute fixed costs across more videos, reducing per-video cost.

Break-even Analysis

Break-even analysis tells you the minimum revenue or views needed to cover your production costs. This calculator uses your specified CPM (default ₹80) and YouTube's 55% creator share to estimate required views. However, your actual CPM varies by niche, audience geography, and content type. Finance content typically earns ₹150-300 CPM, while entertainment may earn ₹50-100 CPM. The calculator also shows minimum sponsorship deals needed assuming ₹50,000 average deal value.

Tax Deductions for Production Costs

• •Equipment Depreciation: Claim depreciation on cameras, computers, lights, microphones
• •Software Subscriptions: Fully deductible (Adobe, Canva, analytics tools)
• •Team Costs: Salaries paid to editors, designers, managers are business expenses
• •Studio Rent: Proportionate home rent or dedicated studio costs
• •Production Expenses: Props, materials, travel, location costs
• •Utilities: Internet, electricity (proportionate to business use)

Healthy Profit Margins

Target a profit margin of 30-40% for sustainable content creation business. Margins below 20% leave little room for growth, investment, or handling revenue fluctuations. If operating at low margins or losses, focus on increasing revenue streams (sponsorships, memberships, courses) or optimizing costs (freelancers instead of full-time staff, batch production to reduce setup costs).