The reported production budget of the first Paranormal Activity film was $15,000.
Oren Peli made the film in his own home in 2006, using a small cast and a deliberately limited visual style. The story follows Katie and Micah as they set up a camera to document disturbances in their bedroom, making the home-video presentation central to the film’s realism.
After the film was completed, DreamWorks acquired it and arranged test screenings. Paramount Pictures eventually gave it a wider release in 2009, using audience reactions and a campaign built around recorded theater responses.
The budget is often cited as approximately $15,000, although reports can vary slightly depending on whether they describe the original production cost or later finishing and distribution expenses. Its commercial success helped make found-footage horror a major mainstream trend.