How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027?

Curated byKory White · Fractional CRO · Maryland

How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027?

📖 3,342 words🗓️ Published Sep 10, 2026

Direct Answer

Budget $15,000 to $150,000 to hire a screenwriter to option and write a feature screenplay in 2027, with $40,000–$75,000 the realistic midpoint for a WGA-scale indie. That figure bundles two payments: an option fee (typically 10% of the purchase price, $1,500–$15,000) and a writing fee ($12,000–$135,000) paid across drafts.

The outcome you should expect

The deliverable from this engagement is not a single document. It is a two-contract package: an option-purchase agreement that grants you the exclusive right to buy the underlying rights within a fixed window, plus a writer services agreement (sometimes called a writing services rider) that pays the screenwriter to produce drafts against that optioned material. Understanding the shape of that package is what makes the cost legible, because the number on the term sheet is really the sum of three separate economic events.

The first event is the option payment. An option is a lease on rights, not a purchase. You pay a relatively small sum — commonly 10% of the agreed purchase price, though 5% to 20% appears in practice — for the exclusive right to develop the material for a set period, usually 12 to 18 months. If you exercise the option, that payment is credited against the purchase price. If you do not, the writer typically keeps the option fee and the rights revert to them. For a feature screenplay, option fees in 2027 land between $1,500 and $15,000 for unproduced or emerging writers, and can climb to $25,000–$50,000 or more when the underlying material already has heat — a major contest placement, a top Nicholl finish, a producer attachment, or a prior shopping agreement that fell apart.

The second event is the writing fee. This is the labor component, and it is where the range explodes. The Writers Guild of America minimums reset each May through the Minimum Basic Agreement, and those floors are the only publicly auditable number in the entire market. For a low-budget feature (defined in the MBA as $5 million or less), the 2023 MBA set the original screenplay minimum at roughly $43,000, with the high-budget minimum at roughly $87,000. Those figures escalate annually under the contract, so by 2027 the low-budget floor is materially higher than the 2023 number. Non-union engagements have no floor at all, which is why quotes from $12,000 to $50,000 circulate freely for the same scope of work.

How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 1

The third event is the purchase price, which only comes due if you exercise. That is typically the larger number — $50,000 to $500,000 for a spec feature from a working writer, and seven figures for established names — but it is contingent, and it is frequently paid on a schedule tied to production start rather than on option exercise. Many first-time option deals never reach this event, which is precisely why the option structure exists: it lets a producer control material for a small fraction of the full acquisition cost while testing whether financing, attachments, and a director can be assembled.

What you should therefore expect to actually wire in year one is the option fee plus the first writing payment, not the full purchase price. On a $60,000 total deal with a $6,000 option and a $54,000 writing fee, you might pay $6,000 at signing, $18,000 on delivery of the first draft, $18,000 on the second draft, and $12,000 on polish and production draft — a cash-flow shape that matters far more to most producers than the headline number.

How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 2

What drives that outcome

Six variables move the number more than anything else, and a producer can usually predict the quote within 20% by scoring them honestly.

Union status. A WGA-signatory deal carries minimums, pension and health contributions (currently around 19.5% on top of scale for the health and pension components combined), residuals, and mandatory separate compensation for rewrites and polishes. A non-union deal carries none of that but also gives the writer no credit protection, no arbitration rights, and no guaranteed rewrite payments. The gap between a union and non-union quote for identical scope is routinely 30% to 60%.

Budget tier. The MBA's low-budget and high-budget thresholds create a genuine cliff. A feature budgeted at $4.9 million pays the low-budget minimum; the same script at $5.1 million pays the high-budget minimum — often a difference of $40,000 or more on the initial draft alone. Producers structure financing partly around this line, and it is legitimate to do so, but you must disclose the budget tier honestly because the difference is auditable.

How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 3

Writer leverage. Credits, representation, prior sales, contest wins, and current heat all compound. A writer with one produced credit and a good agent commands two to three times what an unproduced writer with the same pages commands. A writer coming off a Sundance sale or a Black List placement can command a premium that has nothing to do with the quality of the draft you are buying.

Scope and draft count. One draft plus one set of notes is not the same product as a first draft, a second draft, a polish, and a production draft. Each additional step is separately compensable under the MBA, and non-union deals that bundle four drafts into one fee almost always result in a writer who stops prioritizing your project around draft three. Budget explicitly for draft steps and name them in the agreement.

Underlying rights complexity. If the screenwriter is adapting a novel, a magazine article, a podcast, or a true story, the chain of title grows. You may need a separate option from the underlying rights holder, life rights from real people depicted, or a public-domain analysis. Each of those adds legal cost — $3,000 to $15,000 in attorney time is normal — and can add a second option payment entirely.

How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 4

Term and territory. A worldwide, all-media, perpetual option costs more than a two-year, North America-only option. If you only need to develop and shoot in one territory, narrowing the grant is one of the fastest ways to cut the price without touching the writing fee.

The diagram above is the money path most producers should model before they negotiate. Note that the option fee is credited only on exercise — if you walk, it is gone, and so is every dollar you spent on the writing fee unless the contract says otherwise. That is the single most important economic fact in the structure, and it is why experienced producers negotiate a right to shop the project, a right to attach a director, and a defined turnaround window before they commit to a large writing fee.

How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 5

Benchmarks and realistic ranges

The table below reflects 2027 expectations built from WGA minimum escalators, observed indie deal patterns, and typical agency quotes. Treat the ranges as bands, not quotes — every deal is bespoke, and no reputable representative will confirm a number without reading the material.

Tier	Option fee	Writing fee	Total cash in year one
Unproduced writer, non-union, low-budget indie	$1,500–$5,000	$12,000–$35,000	$13,500–$40,000
Emerging writer with a contest placement, non-union	$3,000–$10,000	$25,000–$60,000	$28,000–$70,000
WGA low-budget signatory	$5,000–$12,000	$45,000–$60,000	$50,000–$72,000
WGA high-budget signatory	$8,000–$20,000	$85,000–$135,000	$93,000–$155,000
Established writer with produced credits	$15,000–$50,000	$150,000–$500,000+	$165,000–$550,000+

A few calibration points help. The WGA's 2023 MBA set the low-budget original screenplay minimum near $43,000 and the high-budget minimum near $87,000, with annual escalators of roughly 3% to 5% in the years that followed; by 2027 the low-budget floor is comfortably above $48,000 and the high-budget floor above $95,000. Pension and health contributions sit on top, so a $50,000 union writing fee actually costs the producer closer to $60,000 fully loaded. Non-union deals have no such floor, which is why the same scope can be quoted at $20,000 by one writer and $65,000 by another with comparable credits.

How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 6

The option fee deserves its own benchmark because it is so often mispriced. The 10% convention is a convention, not a rule. On small deals, producers frequently pay a flat $1 to $500 for a short option period with a larger payment on exercise — sometimes called a "free option" or "dollar option." Writers increasingly resist this, and reasonably so, because a free option transfers real value for nothing. A fair 2027 structure for an unproduced writer is a $2,500 to $5,000 option against a $30,000 to $45,000 purchase price, with the option credited on exercise and a 12-to-18-month term plus one paid extension of $2,500 to $5,000.

Geography matters less than people assume but not nothing. A Los Angeles or New York screenwriter with agency representation will typically quote 20% to 40% above an equally credentialed writer in Atlanta, Austin, or Toronto, largely because of cost of living and the density of competing offers. International writers working in English often quote below US rates, but you then inherit withholding tax, currency risk, and sometimes a different residuals regime.

How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 7

Finally, remember that the writing fee is not the whole cost of getting a screenplay. Development overhead — coverage, notes, table reads, legal, accounting, and the producer's own time — commonly adds 15% to 30% on top. A $60,000 writing deal realistically consumes $72,000 to $80,000 of a development budget before a single frame is shot.

Risks, edge cases, and failure modes

The reversion trap. If your option agreement does not contain a clear reversion clause with a defined notice procedure, rights can sit in limbo for years. Specify in writing that rights revert automatically on a date certain if the option is not exercised, and that the writer must be given written notice of the lapse. Ambiguity here has ended more indie projects than bad scripts have.

The bundled-drafts trap. A single fee covering "all drafts through production" sounds efficient and is usually a mistake. It removes the writer's incentive to deliver a strong first draft, and it removes your ability to walk away after a draft you do not like without forfeiting the whole fee. Pay per step, with a kill fee defined for each step.

How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 8

The chain-of-title gap. If the screenwriter adapted someone else's work without a valid option, your entire investment is at risk regardless of what you paid the writer. Before you sign anything, get a written opinion from an entertainment attorney confirming the chain of title, and confirm that the writer's representations and warranties include a right to assign.

The WGA signatory surprise. If you plan to shoot with a WGA signatory and you signed a non-union writing deal, you may be required to pay the difference between the non-union fee and the applicable MBA minimum, plus contributions, at the point you become a signatory. Budget for that contingency or sign the writer to the MBA from the start.

The credit arbitration risk. Under the MBA, credit is determined by arbitration, not by contract. A writer who delivers a draft but is rewritten may lose sole credit and, with it, the bonus and residuals attached to credit. Non-union deals frequently attempt to lock credit by contract, which is often unenforceable and always a source of dispute.

How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 9

The extension treadmill. Writers increasingly price one extension into the deal and then decline a second. If your financing is not assembled by the end of the option term, you may face a renegotiation from a position of weakness. Build the financing timeline backward from the option expiry and be honest about whether you can hit it.

Currency and tax. Paying a non-US writer triggers withholding, treaty analysis, and often a requirement that the writer obtain a US taxpayer identification number. Budget 30% withholding unless a treaty reduces it, and get tax advice before you sign, not after.

How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 10

A practical rollout plan

The sequence below is the one most experienced producers follow, and it front-loads the cheap steps so that expensive mistakes get caught early.

Clear the rights before you talk money. Confirm who owns the material, whether it is adapted, and whether any prior options exist. Get a one-page chain-of-title memo from counsel. Cost: $500 to $2,500.
Read the material and write coverage. Decide whether you actually want to develop this. A coverage report from a reputable reader costs $75 to $300 and will save you far more than that in avoided option fees.
Score the six drivers above. Union status, budget tier, writer leverage, draft scope, rights complexity, term and territory. This gives you a defensible range before you make an offer.
Make a written offer. Put the option fee, purchase price, writing fee, draft steps, term, territory, and reversion in a one-page term sheet. Send it to the writer or their representative, not verbally.
Negotiate the two agreements in parallel. Do not sign the option without the writing agreement, and vice versa. They are one deal and should be papered together.
Pay the option fee and start the clock. Calendar the expiry date and every draft delivery date immediately.
Pay per draft step, on delivery. Never pay the full writing fee up front. Tie each payment to a delivered, accepted draft.
Track the loaded cost. Add pension and health, legal, coverage, and your own development overhead to the headline number so you know your true basis before you seek financing.
Decide at the option expiry, in writing. Exercise, extend, or let it lapse with proper notice. Do not let it drift.

Two practical notes on the rollout. First, the term sheet in step four is the highest-leverage document in the whole process — it is far cheaper to argue about a number on one page than across two 20-page agreements. Second, step nine is where most producers lose money: they miss the expiry, the rights lapse silently, and the writer is free to take the project elsewhere. Calendar it with a reminder 60 days out and again at 30 days.

FAQ

How much should I budget in total for a first feature option and writing deal?

For an unproduced writer on a non-union, low-budget indie, plan $15,000 to $40,000 in year-one cash, plus 15% to 30% in development overhead. For a WGA low-budget signatory deal, plan $50,000 to $72,000 loaded. For a high-budget signatory deal, $95,000 to $155,000 loaded. Add $3,000 to $15,000 for legal and chain-of-title work.

What percentage of the purchase price is a normal option fee?

Ten percent is the convention, with a practical range of 5% to 20%. On small deals, producers often pay a flat fee rather than a percentage, and on hot material the option fee can exceed 20% because the writer has leverage and competing offers.

Do I have to use the WGA?

No, but the calculation changes if you later become a signatory. If you shoot with a WGA signatory company, you may be required to pay the difference between your non-union writing fee and the applicable MBA minimum, plus pension and health contributions. Many producers sign the writer to the MBA up front to avoid that surprise.

How long should the option term be?

Twelve to eighteen months is standard, with one paid extension of three to six months. Build the term backward from your financing timeline. If you cannot realistically close financing in 18 months, do not sign an 18-month option and hope.

What is a kill fee and do I need one?

A kill fee is a defined payment to the writer if you terminate the engagement before all draft steps are delivered. Yes, you need one, and it should be stated per step — for example, 50% of the next step's fee if you terminate after the first draft. Without it, termination disputes become expensive.

Can I pay the writer a percentage of the film instead of cash?

Yes, but only as a supplement, rarely as a substitute. Deferments and back-end points are common on micro-budget features, but experienced writers treat them as worth close to zero unless the film has a credible distribution path. Expect to pay meaningful cash regardless.

Sources

Writers Guild of America Minimum Basic Agreement and rate schedules: https://www.wga.org/contracts/contracts/mba
Writers Guild of America West, screenwriter resources and credit arbitration: https://www.wga.org/
U.S. Copyright Office, registration and chain of title guidance: https://www.copyright.gov/
U.S. Small Business Administration, business and contract basics for independent producers: https://www.sba.gov/
Screen Actors Guild–American Federation of Television and Radio Artists, signatory and low-budget agreements: https://www.sagaftra.org/contracts-industry-resources
California Secretary of State, business entity and contract filing information: https://www.sos.ca.gov/
Internal Revenue Service, withholding on payments to non-US persons: https://www.irs.gov/
Sundance Institute, feature film development and financing resources: https://www.sundance.org/

flowchart TD S["How much does it cost to hire a screen"] S --> N0["The outcome you should expect"] N0 --> N1["What drives that outcome"] N1 --> N2["Benchmarks and realistic ranges"] N2 --> N3["Risks, edge cases, and failure modes"]

flowchart LR C["How much does it cost to hire a screen"] C --> H0["What drives that outcome"] C --> H1["Benchmarks and realistic ranges"] C --> H2["Risks, edge cases, and failure modes"] C --> H3["A practical rollout plan"]

Related on PULSE

How film option agreements work and what triggers reversion
WGA minimums versus non-union writing fees: a producer's comparison
Budgeting development overhead for an independent feature
Chain of title: what to verify before you option a screenplay
Structuring rewrite and polish payments across draft steps
Turnaround, shopping agreements, and how rights move between producers

Download:

## Direct Answer

Budget $15,000 to $150,000 to hire a screenwriter to option and write a feature screenplay in 2027, with $40,000–$75,000 the realistic midpoint for a WGA-scale indie. That figure bundles two payments: an option fee (typically 10% of the purchase price, $1,500–$15,000) and a writing fee ($12,000–$135,000) paid across drafts.

## The outcome you should expect

```mermaid
flowchart TD
  S["How much does it cost to hire a screen"]
  S --> N0["The outcome you should expect"]
  N0 --> N1["What drives that outcome"]
  N1 --> N2["Benchmarks and realistic ranges"]
  N2 --> N3["Risks, edge cases, and failure modes"]
```


The deliverable from this engagement is not a single document. It is a two-contract package: an option-purchase agreement that grants you the exclusive right to buy the underlying rights within a fixed window, plus a writer services agreement (sometimes called a writing services rider) that pays the screenwriter to produce drafts against that optioned material. Understanding the shape of that package is what makes the cost legible, because the number on the term sheet is really the sum of three separate economic events.

The first event is the option payment. An option is a lease on rights, not a purchase. You pay a relatively small sum — commonly 10% of the agreed purchase price, though 5% to 20% appears in practice — for the exclusive right to develop the material for a set period, usually 12 to 18 months. If you exercise the option, that payment is credited against the purchase price. If you do not, the writer typically keeps the option fee and the rights revert to them. For a feature screenplay, option fees in 2027 land between $1,500 and $15,000 for unproduced or emerging writers, and can climb to $25,000–$50,000 or more when the underlying material already has heat — a major contest placement, a top Nicholl finish, a producer attachment, or a prior shopping agreement that fell apart.

The second event is the writing fee. This is the labor component, and it is where the range explodes. The Writers Guild of America minimums reset each May through the Minimum Basic Agreement, and those floors are the only publicly auditable number in the entire market. For a low-budget feature (defined in the MBA as $5 million or less), the 2023 MBA set the original screenplay minimum at roughly $43,000, with the high-budget minimum at roughly $87,000. Those figures escalate annually under the contract, so by 2027 the low-budget floor is materially higher than the 2023 number. Non-union engagements have no floor at all, which is why quotes from $12,000 to $50,000 circulate freely for the same scope of work.

![How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 1](/assets/qa/mv239-b1.jpg)



The third event is the purchase price, which only comes due if you exercise. That is typically the larger number — $50,000 to $500,000 for a spec feature from a working writer, and seven figures for established names — but it is contingent, and it is frequently paid on a schedule tied to production start rather than on option exercise. Many first-time option deals never reach this event, which is precisely why the option structure exists: it lets a producer control material for a small fraction of the full acquisition cost while testing whether financing, attachments, and a director can be assembled.

What you should therefore expect to actually wire in year one is the option fee plus the first writing payment, not the full purchase price. On a $60,000 total deal with a $6,000 option and a $54,000 writing fee, you might pay $6,000 at signing, $18,000 on delivery of the first draft, $18,000 on the second draft, and $12,000 on polish and production draft — a cash-flow shape that matters far more to most producers than the headline number.

![How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 2](/assets/qa/mv239-b2.jpg)



## What drives that outcome

```mermaid
flowchart LR
  C["How much does it cost to hire a screen"]
  C --> H0["What drives that outcome"]
  C --> H1["Benchmarks and realistic ranges"]
  C --> H2["Risks, edge cases, and failure modes"]
  C --> H3["A practical rollout plan"]
```


Six variables move the number more than anything else, and a producer can usually predict the quote within 20% by scoring them honestly.

**Union status.** A WGA-signatory deal carries minimums, pension and health contributions (currently around 19.5% on top of scale for the health and pension components combined), residuals, and mandatory separate compensation for rewrites and polishes. A non-union deal carries none of that but also gives the writer no credit protection, no arbitration rights, and no guaranteed rewrite payments. The gap between a union and non-union quote for identical scope is routinely 30% to 60%.

**Budget tier.** The MBA's low-budget and high-budget thresholds create a genuine cliff. A feature budgeted at $4.9 million pays the low-budget minimum; the same script at $5.1 million pays the high-budget minimum — often a difference of $40,000 or more on the initial draft alone. Producers structure financing partly around this line, and it is legitimate to do so, but you must disclose the budget tier honestly because the difference is auditable.

![How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 3](/assets/qa/mv239-b3.jpg)



**Writer leverage.** Credits, representation, prior sales, contest wins, and current heat all compound. A writer with one produced credit and a good agent commands two to three times what an unproduced writer with the same pages commands. A writer coming off a Sundance sale or a Black List placement can command a premium that has nothing to do with the quality of the draft you are buying.

**Scope and draft count.** One draft plus one set of notes is not the same product as a first draft, a second draft, a polish, and a production draft. Each additional step is separately compensable under the MBA, and non-union deals that bundle four drafts into one fee almost always result in a writer who stops prioritizing your project around draft three. Budget explicitly for draft steps and name them in the agreement.

**Underlying rights complexity.** If the screenwriter is adapting a novel, a magazine article, a podcast, or a true story, the chain of title grows. You may need a separate option from the underlying rights holder, life rights from real people depicted, or a public-domain analysis. Each of those adds legal cost — $3,000 to $15,000 in attorney time is normal — and can add a second option payment entirely.

![How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 4](/assets/qa/mv239-b4.jpg)



**Term and territory.** A worldwide, all-media, perpetual option costs more than a two-year, North America-only option. If you only need to develop and shoot in one territory, narrowing the grant is one of the fastest ways to cut the price without touching the writing fee.

The diagram above is the money path most producers should model before they negotiate. Note that the option fee is credited only on exercise — if you walk, it is gone, and so is every dollar you spent on the writing fee unless the contract says otherwise. That is the single most important economic fact in the structure, and it is why experienced producers negotiate a right to shop the project, a right to attach a director, and a defined turnaround window before they commit to a large writing fee.

![How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 5](/assets/qa/mv239-b5.jpg)



## Benchmarks and realistic ranges

The table below reflects 2027 expectations built from WGA minimum escalators, observed indie deal patterns, and typical agency quotes. Treat the ranges as bands, not quotes — every deal is bespoke, and no reputable representative will confirm a number without reading the material.

| Tier | Option fee | Writing fee | Total cash in year one |
|---|---|---|---|
| Unproduced writer, non-union, low-budget indie | $1,500–$5,000 | $12,000–$35,000 | $13,500–$40,000 |
| Emerging writer with a contest placement, non-union | $3,000–$10,000 | $25,000–$60,000 | $28,000–$70,000 |
| WGA low-budget signatory | $5,000–$12,000 | $45,000–$60,000 | $50,000–$72,000 |
| WGA high-budget signatory | $8,000–$20,000 | $85,000–$135,000 | $93,000–$155,000 |
| Established writer with produced credits | $15,000–$50,000 | $150,000–$500,000+ | $165,000–$550,000+ |

A few calibration points help. The WGA's 2023 MBA set the low-budget original screenplay minimum near $43,000 and the high-budget minimum near $87,000, with annual escalators of roughly 3% to 5% in the years that followed; by 2027 the low-budget floor is comfortably above $48,000 and the high-budget floor above $95,000. Pension and health contributions sit on top, so a $50,000 union writing fee actually costs the producer closer to $60,000 fully loaded. Non-union deals have no such floor, which is why the same scope can be quoted at $20,000 by one writer and $65,000 by another with comparable credits.

![How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 6](/assets/qa/mv239-b6.jpg)



The option fee deserves its own benchmark because it is so often mispriced. The 10% convention is a convention, not a rule. On small deals, producers frequently pay a flat $1 to $500 for a short option period with a larger payment on exercise — sometimes called a "free option" or "dollar option." Writers increasingly resist this, and reasonably so, because a free option transfers real value for nothing. A fair 2027 structure for an unproduced writer is a $2,500 to $5,000 option against a $30,000 to $45,000 purchase price, with the option credited on exercise and a 12-to-18-month term plus one paid extension of $2,500 to $5,000.

Geography matters less than people assume but not nothing. A Los Angeles or New York screenwriter with agency representation will typically quote 20% to 40% above an equally credentialed writer in Atlanta, Austin, or Toronto, largely because of cost of living and the density of competing offers. International writers working in English often quote below US rates, but you then inherit withholding tax, currency risk, and sometimes a different residuals regime.

![How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 7](/assets/qa/mv239-b7.jpg)



Finally, remember that the writing fee is not the whole cost of getting a screenplay. Development overhead — coverage, notes, table reads, legal, accounting, and the producer's own time — commonly adds 15% to 30% on top. A $60,000 writing deal realistically consumes $72,000 to $80,000 of a development budget before a single frame is shot.

## Risks, edge cases, and failure modes

**The reversion trap.** If your option agreement does not contain a clear reversion clause with a defined notice procedure, rights can sit in limbo for years. Specify in writing that rights revert automatically on a date certain if the option is not exercised, and that the writer must be given written notice of the lapse. Ambiguity here has ended more indie projects than bad scripts have.

**The bundled-drafts trap.** A single fee covering "all drafts through production" sounds efficient and is usually a mistake. It removes the writer's incentive to deliver a strong first draft, and it removes your ability to walk away after a draft you do not like without forfeiting the whole fee. Pay per step, with a kill fee defined for each step.

![How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 8](/assets/qa/mv239-b8.jpg)



**The chain-of-title gap.** If the screenwriter adapted someone else's work without a valid option, your entire investment is at risk regardless of what you paid the writer. Before you sign anything, get a written opinion from an entertainment attorney confirming the chain of title, and confirm that the writer's representations and warranties include a right to assign.

**The WGA signatory surprise.** If you plan to shoot with a WGA signatory and you signed a non-union writing deal, you may be required to pay the difference between the non-union fee and the applicable MBA minimum, plus contributions, at the point you become a signatory. Budget for that contingency or sign the writer to the MBA from the start.

**The credit arbitration risk.** Under the MBA, credit is determined by arbitration, not by contract. A writer who delivers a draft but is rewritten may lose sole credit and, with it, the bonus and residuals attached to credit. Non-union deals frequently attempt to lock credit by contract, which is often unenforceable and always a source of dispute.

![How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 9](/assets/qa/mv239-b9.jpg)



**The extension treadmill.** Writers increasingly price one extension into the deal and then decline a second. If your financing is not assembled by the end of the option term, you may face a renegotiation from a position of weakness. Build the financing timeline backward from the option expiry and be honest about whether you can hit it.

**Currency and tax.** Paying a non-US writer triggers withholding, treaty analysis, and often a requirement that the writer obtain a US taxpayer identification number. Budget 30% withholding unless a treaty reduces it, and get tax advice before you sign, not after.

![How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027 — figure 10](/assets/qa/mv239-b10.jpg)



## A practical rollout plan

The sequence below is the one most experienced producers follow, and it front-loads the cheap steps so that expensive mistakes get caught early.

1. **Clear the rights before you talk money.** Confirm who owns the material, whether it is adapted, and whether any prior options exist. Get a one-page chain-of-title memo from counsel. Cost: $500 to $2,500.
2. **Read the material and write coverage.** Decide whether you actually want to develop this. A coverage report from a reputable reader costs $75 to $300 and will save you far more than that in avoided option fees.
3. **Score the six drivers above.** Union status, budget tier, writer leverage, draft scope, rights complexity, term and territory. This gives you a defensible range before you make an offer.
4. **Make a written offer.** Put the option fee, purchase price, writing fee, draft steps, term, territory, and reversion in a one-page term sheet. Send it to the writer or their representative, not verbally.
5. **Negotiate the two agreements in parallel.** Do not sign the option without the writing agreement, and vice versa. They are one deal and should be papered together.
6. **Pay the option fee and start the clock.** Calendar the expiry date and every draft delivery date immediately.
7. **Pay per draft step, on delivery.** Never pay the full writing fee up front. Tie each payment to a delivered, accepted draft.
8. **Track the loaded cost.** Add pension and health, legal, coverage, and your own development overhead to the headline number so you know your true basis before you seek financing.
9. **Decide at the option expiry, in writing.** Exercise, extend, or let it lapse with proper notice. Do not let it drift.

Two practical notes on the rollout. First, the term sheet in step four is the highest-leverage document in the whole process — it is far cheaper to argue about a number on one page than across two 20-page agreements. Second, step nine is where most producers lose money: they miss the expiry, the rights lapse silently, and the writer is free to take the project elsewhere. Calendar it with a reminder 60 days out and again at 30 days.

## Related questions

### Does the option fee count toward the purchase price?

Yes, in standard practice. The option fee is credited against the purchase price on exercise. If you pay a $6,000 option against a $60,000 purchase price and exercise, you owe $54,000 at closing. If you do not exercise, the writer keeps the $6,000 and the rights revert to them.

### Can I option a screenplay without paying anything?

A "free option" or "dollar option" is legally possible and occasionally used for short periods, but it transfers real value to you for nothing and is increasingly refused by represented writers. Expect to pay at least $1,000 to $5,000 for a meaningful term on unproduced material.

### Are WGA minimums the same as what writers actually get?

No. MBA minimums are floors, not market rates. Established writers routinely earn two to ten times scale, and non-union deals have no floor at all. The minimums matter most for low-budget indie features and for establishing the baseline in a negotiation.

### What happens if the writer is rewritten?

Under the MBA, credit is decided by arbitration, and a rewritten writer may lose credit and the compensation tied to it. In non-union deals, credit is often locked by contract, but such clauses are frequently unenforceable and always contentious.

### Is it cheaper to hire a writer for a spec script instead of an option?

Usually yes, in the sense that a straight work-for-hire commission avoids the purchase-price event entirely. But you lose the ability to walk away cheaply, and you typically pay the full writing fee regardless of whether the script is producible. Options exist precisely to cap that downside.

## FAQ

**How much should I budget in total for a first feature option and writing deal?**

For an unproduced writer on a non-union, low-budget indie, plan $15,000 to $40,000 in year-one cash, plus 15% to 30% in development overhead. For a WGA low-budget signatory deal, plan $50,000 to $72,000 loaded. For a high-budget signatory deal, $95,000 to $155,000 loaded. Add $3,000 to $15,000 for legal and chain-of-title work.

**What percentage of the purchase price is a normal option fee?**

Ten percent is the convention, with a practical range of 5% to 20%. On small deals, producers often pay a flat fee rather than a percentage, and on hot material the option fee can exceed 20% because the writer has leverage and competing offers.

**Do I have to use the WGA?**

No, but the calculation changes if you later become a signatory. If you shoot with a WGA signatory company, you may be required to pay the difference between your non-union writing fee and the applicable MBA minimum, plus pension and health contributions. Many producers sign the writer to the MBA up front to avoid that surprise.

**How long should the option term be?**

Twelve to eighteen months is standard, with one paid extension of three to six months. Build the term backward from your financing timeline. If you cannot realistically close financing in 18 months, do not sign an 18-month option and hope.

**What is a kill fee and do I need one?**

A kill fee is a defined payment to the writer if you terminate the engagement before all draft steps are delivered. Yes, you need one, and it should be stated per step — for example, 50% of the next step's fee if you terminate after the first draft. Without it, termination disputes become expensive.

**Can I pay the writer a percentage of the film instead of cash?**

Yes, but only as a supplement, rarely as a substitute. Deferments and back-end points are common on micro-budget features, but experienced writers treat them as worth close to zero unless the film has a credible distribution path. Expect to pay meaningful cash regardless.

## Sources

- Writers Guild of America Minimum Basic Agreement and rate schedules: https://www.wga.org/contracts/contracts/mba
- Writers Guild of America West, screenwriter resources and credit arbitration: https://www.wga.org/
- U.S. Copyright Office, registration and chain of title guidance: https://www.copyright.gov/
- U.S. Small Business Administration, business and contract basics for independent producers: https://www.sba.gov/
- Screen Actors Guild–American Federation of Television and Radio Artists, signatory and low-budget agreements: https://www.sagaftra.org/contracts-industry-resources
- California Secretary of State, business entity and contract filing information: https://www.sos.ca.gov/
- Internal Revenue Service, withholding on payments to non-US persons: https://www.irs.gov/
- Sundance Institute, feature film development and financing resources: https://www.sundance.org/

## Related on PULSE

- How film option agreements work and what triggers reversion
- WGA minimums versus non-union writing fees: a producer's comparison
- Budgeting development overhead for an independent feature
- Chain of title: what to verify before you option a screenplay
- Structuring rewrite and polish payments across draft steps
- Turnaround, shopping agreements, and how rights move between producers

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How much does it cost to hire a screenwriter to option and write a feature screenplay in 2027?

The outcome you should expect

What drives that outcome

Benchmarks and realistic ranges

Risks, edge cases, and failure modes

A practical rollout plan

Related questions

Does the option fee count toward the purchase price?

Can I option a screenplay without paying anything?

Are WGA minimums the same as what writers actually get?

What happens if the writer is rewritten?

Is it cheaper to hire a writer for a spec script instead of an option?

FAQ

Sources

Related on PULSE

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