Joel was born in New York City from a Swedish mother, and raised there. He studied design and display at Parsons School of Design, New School University. He worked as a store window dresser before getting into films.

Joel began his career in the entertainment industry as an art director for television commercials before becoming costume designer for such notable films as Woody Allen's Sleeper and Interiors, Herbert Ross's The Last of Sheila and Paul Mazursky's Blume In Love.

He then wrote the screenplays for Sparkle and the hit comedy Car Wash. Joel made his directing debut with the television movie The Virginia Hill Story, starring Dyan Cannon in the title role and Harvey Keitel as the mobster Bugsy Siegel. This was followed by his award-winning telefilm Amateur Night at the Dixie Bar and Grill.

The Incredible Shrinking Woman, starring Lily Tomlin, marked his feature film directing debut, followed by D.C. Cab, for which he also wrote the screenplay. Schumacher also wrote the script for St. Elmo's Fire with Carl Kurlander. In 1988, he directed the successful Chicago theatrical run of David Mamet's scorching Hollywood satire, Speed-the-Plow.

Other titles include Batman Forever, and A Time to Kill