An FTE (Full-Time Equivalent) Calculator is a human resources and management tool that standardizes a company's workforce into a single, comparable metric. It works by converting the hours worked by part-time employees into the equivalent number of full-time employees. For example, two employees who each work 20 hours a week would together equal one "full-time equivalent" employee in a standard 40-hour workweek. This calculation is crucial for a wide range of business functions, including budget planning, project staffing, and for determining eligibility for certain benefits and government regulations, such as those under the Affordable Care Act (ACA). Consequently, it provides a consistent way to measure the size of a workforce, regardless of the mix of full-time and part-time staff.
formula of FTE (Full-Time-Equivalent) Calculator
The calculation for Full-Time Equivalent (FTE) focuses on converting the hours of part-time employees into full-time units.
1. FTE of Part-Time Employees
FTE = Total Part-Time Hours / Hours in a Full-Time Work Period
Breakdown of Formula Components
- Total Part-Time Hours: The sum of all hours worked by all part-time employees during a specific period (e.g., one week).
- Sub-Formula: Total Part-Time Hours = Sum of (Hours per week for Employee 1 + Hours per week for Employee 2 + ...)
- Hours in a Full-Time Work Period: This is the standard number of hours that a single full-time employee would work in that same period, as defined by the organization.
- Common Weekly Standard: 40 hours
- Common Annual Standard: 2,080 hours (40 hours/week * 52 weeks/year)
2. Combining with Full-Time Employees
To find the total FTE for an entire organization, you simply add the number of full-time employees to the calculated FTE for the part-time employees.
Formula:
Total Organizational FTE = Number of Full-Time Employees + FTE of Part-Time Employees
Part-Time Hours to FTE Conversion (Based on a 40-Hour Week)
This table provides a quick reference for the FTE value of common part-time weekly work schedules.
| Total Part-Time Hours Worked per Week | Calculation (Hours / 40) | Full-Time Equivalent (FTE) |
| 10 hours | 10 / 40 | 0.25 FTE |
| 20 hours | 20 / 40 | 0.50 FTE |
| 30 hours | 30 / 40 | 0.75 FTE |
| 40 hours | 40 / 40 | 1.00 FTE |
| 60 hours | 60 / 40 | 1.50 FTE |
| 80 hours | 80 / 40 | 2.00 FTE |
Example of FTE (Full-Time-Equivalent) Calculator
A small business wants to calculate its total FTE for a typical week to see if it qualifies for a particular small business grant. The company defines a full-time workweek as 40 hours.
First, the manager lists the employees and their weekly hours.
- Full-Time Employees: 5 people
- Part-Time Employees:
- Employee A: 30 hours/week
- Employee B: 20 hours/week
- Employee C: 20 hours/week
- Employee D: 10 hours/week
Step 1: Calculate the Total Part-Time Hours.
Total Part-Time Hours = 30 + 20 + 20 + 10
Total Part-Time Hours = 80 hours
Step 2: Calculate the FTE for the part-time employees.
FTE of Part-Time Employees = Total Part-Time Hours / Hours in a Full-Time Work Period
FTE of Part-Time Employees = 80 / 40 = 2.0
Step 3: Calculate the Total Organizational FTE.
Total Organizational FTE = Number of Full-Time Employees + FTE of Part-Time Employees
Total Organizational FTE = 5 + 2.0 = 7.0
Therefore, the company has a total of 7.0 Full-Time Equivalent employees.
Most Common FAQs
A simple headcount can be misleading. A company with 10 employees who all work 10 hours a week has a much smaller labor capacity than a company with 10 full-time employees. FTE standardizes the workforce based on total hours worked, providing a much more accurate measure for budgeting, resource allocation, and comparing the size of different organizations.
For most general business purposes and for regulations like the ACA, the hours worked by a single employee are typically capped at the full-time standard (e.g., 40 hours per week). This means that overtime hours worked by a full-time employee do not increase the total FTE count. FTE is meant to measure the size of the workforce, not the intensity of the work.
Under the ACA, employers with 50 or more Full-Time Equivalent employees are considered "Applicable Large Employers" (ALEs) and are subject to certain healthcare coverage requirements. The ACA has a specific method for calculating FTE, which involves taking the total hours worked by all non-full-time employees in a month and dividing by 120. This FTE calculation is a critical step for businesses to determine their responsibilities under the law.