How the Full-Time Equivalent (FTE) Calculator works
FTE (Full-Time Equivalent) is a standard workforce metric that converts a headcount mixing full-time and part-time employees into a single number expressed in full-time units. It answers the question: "how many full-time positions is this workforce actually equivalent to?" HR and finance teams use it for labor budgeting, staffing ratios, grant reporting, and regulatory thresholds such as the Affordable Care Act's employer mandate.
The formula
For a full-time headcount F, a part-time headcount P, the average weekly hours worked by part-time staff H, and the standard full-time weekly hours S (commonly 40), total FTE is:
FTE = F + (P × H ÷ S)
Each part-time employee is converted into a fraction of one full-time slot based on how many hours they work relative to a full-time schedule. A part-time worker averaging 20 hours a week against a 40-hour standard counts as 0.5 FTE; one averaging 10 hours counts as 0.25 FTE. Full-time employees always count as exactly 1.0 FTE each.
Worked example
Take 25 full-time employees and 10 part-time employees averaging 20 hours a week, against a 40-hour standard full-time week. The part-time FTE is (10 × 20) ÷ 40 = 5.0 FTE. Total FTE is 25 + 5.0 = 30.0 FTE, even though the raw headcount is 35 people. The FTE ratio — total FTE divided by total headcount — is 30.0 ÷ 35 ≈ 85.7%, showing the workforce runs slightly below a fully full-time schedule on average.
Choosing a standard full-time week
- 40 hours/week is the most common US benchmark, equal to about 2,080 hours per year before accounting for holidays or leave.
- 37.5 hours/week is common where a paid lunch break is excluded from the scheduled week.
- 30 hours/week is the threshold the Affordable Care Act uses to define "full-time" for the employer shared-responsibility mandate — a different definition from an internal HR full-time policy, so check which one your calculation needs before comparing to a regulatory limit.
Whichever standard you choose, apply it consistently to every part-time employee in the calculation — switching definitions mid-calculation is the most common source of FTE errors.
What moves the total most
Full-time headcount contributes one-for-one to total FTE, so it dominates when the workforce is mostly full-time. Part-time FTE is most sensitive to average part-time hours: doubling average part-time hours doubles the part-time FTE contribution, while doubling part-time headcount at the same average hours also doubles it. The standard full-time hours figure acts as the denominator — raising it (say from 35 to 40 hours) lowers every part-time employee's FTE contribution, so changing that benchmark alone can shift the total without anyone's actual schedule changing.