A real-time image processing method and system has an output image framing technique which displays a live view image in an effective image area. The effective image area is a predefined portion of an overall composite image that forms the output image which can include at least one other image area, such as a logo, banner or other overlay image, and the effective image area is the maximum size automatically cropped from a source image of a digital camera based on an aspect ratio and orientation of the effective image in the predefined portion of the output image. The system displays the effective image on a view screen in real-time during a photo shoot in the same aspect ratio and orientation as the effective image area that is the predefined portion of the composite image without requiring any post-processing cropping or rotation of the image or camera rotation.