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FTE Calculator

Calculate your Full-Time Equivalent (FTE) headcount by combining full-time and part-time employees into a standardized workforce measure.

Number of employees working full-time hours

Number of employees working part-time hours

Average weekly hours for part-time staff

Standard full-time weekly hours (usually 40)

Enter your employee counts, then click Calculate to see your FTE breakdown.

How FTE Calculation Works

How FTE Calculation Works

Full-Time Equivalent (FTE) is a standardized way to measure your workforce size by converting all employees — both full-time and part-time — into a single comparable number. This metric is essential for HR planning, compliance, and budgeting.

The FTE Formula

The formula for calculating FTE is straightforward:

Total FTE = Full-Time Employees + (Part-Time Employees x Average Part-Time Hours / Full-Time Hours)

For example, if you have 10 full-time employees working 40 hours per week and 8 part-time employees averaging 20 hours per week, your FTE would be: 10 + (8 x 20 / 40) = 10 + 4 = 14 FTE.

When FTE Matters

FTE calculations are critical in several business scenarios. The Affordable Care Act (ACA) requires employers with 50 or more FTE to provide health insurance. The Paycheck Protection Program (PPP) used FTE to determine loan amounts and forgiveness. Many government contracts and grants require minimum FTE thresholds.

FTE vs. Headcount

Headcount simply counts the number of people employed, regardless of hours worked. A company with 20 full-time and 20 part-time employees has a headcount of 40 but might only have 30 FTE. Using FTE gives a more accurate picture of your workforce capacity and labor costs. When comparing staffing levels across departments or companies, FTE provides an apples-to-apples comparison that headcount alone cannot offer.

Frequently asked questions

A Full-Time Equivalent (FTE) is a unit of measurement that represents the workload of a full-time employee. One FTE equals one employee working full-time hours (typically 40 hours per week). Two part-time employees each working 20 hours per week would equal 1.0 FTE combined. FTE is used to standardize headcount when a workforce includes both full-time and part-time employees.

FTE is important for budgeting, workforce planning, and regulatory compliance. It helps you understand your true staffing capacity regardless of how many workers are part-time. FTE counts are used to determine eligibility for programs like the Small Business Health Options Program (SHOP) and to calculate productivity metrics like revenue per FTE.

Under the Affordable Care Act (ACA), businesses with 50 or more full-time equivalent employees are considered Applicable Large Employers (ALEs) and must offer affordable health insurance to full-time employees or face potential penalties. The ACA defines full-time as 30 or more hours per week (not 40), so you may need to adjust the full-time hours setting when calculating FTE for ACA purposes.

Seasonal and temporary workers are included in FTE calculations the same way as other part-time employees. Add their average weekly hours and divide by your full-time hours threshold. For ACA purposes, seasonal workers who work fewer than 120 days per year can be excluded from the 50-FTE threshold determination, but their hours still count during the months they work.

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