FTE Calculator (Full-Time Equivalent)
Full-time equivalent (FTE) converts all hours worked by full-time and part-time staff into the number of full-time employees they add up to. It standardizes headcount for budgeting, benchmarks, and compliance thresholds.
- Full-time equivalents
- 2.5
How it works
FTE = Total Hours Worked per Week / Full-Time Hours per Week
Add up the weekly hours of everyone in scope, including part-timers and contractors if your purpose counts them, then divide by what your organization defines as full time (usually 40 hours, 30 for ACA purposes).
Use the same period consistently. You can run it on annual hours instead (divide by 2,080) and get the same answer.
Worked example
Two full-timers at 40 hours plus two part-timers at 10 hours each is 100 hours a week. At a 40-hour standard that is 2.5 FTE.
Frequently asked questions
- How many hours is 1 FTE?
- Whatever your organization defines as full time, most commonly 40 hours a week or 2,080 a year. For ACA employer-mandate purposes the IRS uses 30 hours a week.
- Why does FTE matter for compliance?
- Several US thresholds key off FTE counts, including the ACA's 50-FTE applicable large employer test. Miscounting part-time hours is the usual error.
- Do contractors count toward FTE?
- For internal capacity planning, count them if they do the work of employees. For legal thresholds like the ACA, only employees count; misclassified contractors are a separate risk.
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