How to Calculate a Full-Time Equivalent (FTE)
Introduction
The term "Full-Time Equivalent" (FTE) often sparks varied reactions. Some effortlessly calculate FTEs for multiple roles with diverse schedules, while others recognize the term but may need a moment to compute anything beyond a full-time position. At FTE Tree, we aim to demystify FTE calculations for organizations of all sizes. While our software streamlines the process, understanding the underlying math remains invaluable.
To support you, we’ve created a downloadable FTE Cheat Sheet available in both Excel and PDF formats.
What Are Full-Time Equivalents?
An FTE measures hours worked relative to a full-time schedule, enabling consistent comparisons across different time periods—be it a day, week, month, or year. This metric is crucial for monitoring staffing levels and analyzing workforce data over time. For instance, comparing one employee’s 40-hour week to another’s is straightforward, but FTEs shine when comparing a single week’s hours to an annual average.
FTEs are typically expressed with two decimal places (e.g., 1.00 or 0.75) for precision, which is the standard in our software. If your organization uses more decimal places for aggregated FTEs, we’d love to hear about your approach—please contact us!
Calculating FTEs Across Time Periods
FTE calculations are flexible and can be applied to any time frame. The formula is simple: divide the hours worked by the full-time hours for the same period. Below are examples for common periods.
Daily (8-Hour Schedule)
For a standard 8-hour workday: - 8 hours worked = 1.00 FTE - 6 hours worked = 0.75 FTE
| Daily - 8 Hours per Period | ||
|---|---|---|
| Hours Worked | 8 | |
| Full-Time Hours | ÷ | 8 |
| FTE | = | 1.00 |
| Daily - 8 Hours per Period | ||
|---|---|---|
| Hours Worked | 6 | |
| Full-Time Hours | ÷ | 8 |
| FTE | = | 0.75 |
While daily FTEs are simple, they’re less common due to varied schedules. The same logic applies to longer periods.
Weekly (40-Hour Schedule)
In a standard 40-hour workweek: - 40 hours worked = 1.00 FTE - 32 hours worked = 0.80 FTE
| Weekly - 40 Hours per Period | ||
|---|---|---|
| Hours Worked | 40 | |
| Full-Time Hours | ÷ | 40 |
| FTE | = | 1.00 |
| Weekly - 40 Hours per Period | ||
|---|---|---|
| Hours Worked | 32 | |
| Full-Time Hours | ÷ | 40 |
| FTE | = | 0.80 |
Biweekly (80-Hour Schedule)
For a biweekly pay period with 80 full-time hours: - 80 hours worked = 1.00 FTE - 64 hours worked = 0.80 FTE
| Biweekly - 80 Hours per Period | ||
|---|---|---|
| Hours Worked | 80 | |
| Full-Time Hours | ÷ | 80 |
| FTE | = | 1.00 |
| Biweekly - 80 Hours per Period | ||
|---|---|---|
| Hours Worked | 64 | |
| Full-Time Hours | ÷ | 80 |
| FTE | = | 0.80 |
Overtime
FTEs can exceed 1.00 when hours worked surpass the full-time standard. For example, in an 80-hour biweekly period: - 90 hours worked = 1.13 FTE
| Biweekly - 80 Hours per Period | ||
|---|---|---|
| Hours Worked | 90 | |
| Full-Time Hours | ÷ | 80 |
| FTE | = | 1.13 |
Annual (2,080-Hour Schedule)
Annually, FTEs are often based on 2,080 hours (8 hours/day × 5 days/week × 52 weeks/year): - 2,080 hours worked = 1.00 FTE
| Annual Hours per FTE | ||
|---|---|---|
| Hours per Day | 8 | |
| Days per Week | × | 5 |
| Hours per Week | = | 40 |
| Weeks per Year | × | 52 |
| Annual Hours per FTE | = | 2,080 |
Exceptions to the 2,080-Hour Standard
While 2,080 hours is the norm, some organizations adjust this figure for factors like leap years or specific accounting practices. However, 2,080 hours is a reliable default for most calculations.
Ready to Master FTE Calculations?
Calculating FTEs is straightforward: divide hours worked by the full-time hours for the period. For additional support, contact us at support@ftetree.com or visit our Contact Page.
FTE Tree: Simplifying Workforce Management
FTE Tree empowers operations, finance, and HR teams with precise FTE tracking. Our software supports direct FTE input or schedule-based calculations over various periods (1, 7, 14, or 28 days) and offers dynamic annual hour adjustments for accurate cost estimates. Learn more in our Help Center.
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