Full-Time Equivalent FTE & How to Calculate It

If you want to save time, why not use our free full time equivalent calculator template for excel to easily work out your company’s FTE. Information contained in this alert is for the general education and knowledge of our readers. Moreover, the laws of each jurisdiction are different and are constantly changing.

For instance, let’s say a full-time graphic designer working 40 hours per week makes $48,000 per year. A part-time graphic designer working 30 hours per week at that same company would have an FTE of 0.75 since they work 75% of that 40 hours. To determine your total FTE, add the total part-time hours worked, plus the total full-time hours worked. From there, if your full-time hours are 40 per week, divide the number by 2,080.

FTEs calculator for the small businesses tax credit program

The IFTE of 4 employees equals 160 work hours (assuming a regular work week has 40 hours). You typically would not include hours that owners or partners work within this calculation, but you can do so for your own accounting purposes if you want to include labor from ownership as part of your evaluation. To easily calculate your employees’ FTE, try out Clockify — a time tracking tool that can also be of great help for identifying your employees’ FTEs.

Using the same formula, the number of part-time hours worked amounts to 5,000 hours per year. The chart below displays the number of weekly hours worked with the corresponding FTE under the standard 40 work-week. It applies the following procedure, which we explain through an example for a hypothetical company. Find the average number of hours worked to see if there’s room for scaling or if you need to cut back to save on costs. For example, you’ll want more hands on deck in a restaurant during the busy holiday and summer seasons.

What Is a Full-Time Equivalent (FTE)?

To calculate the total FTE, add the number of FTEs worked by full-time employees (1 FTE for each full-time worker) to the part-time FTE you calculated in step five. Next, add the total hours worked by full-time employees and the total part-time hours worked by part-time employees. A full-time equivalent (FTE) is a unit of measurement used to figure out the number of full-time hours worked by all employees in a business.

Meanwhile, FTE tells you how many full-time hours are being collectively worked. Headcount (also known as employee count) is a metric that calculates the number of employees in an organization at any given time. This helps HR focus their recruitment efforts and inform workforce planning efforts to ensure they have the right people in the right place to meet organizational goals. Essentially, the FTE is the number of determined full-time positions in an organisation.

FTE Calculator

With Float, you can check the total leave balance for FTE or PTE employees using the time off policies feature. You can view the unused balance as a whole number or percentage for on-the-fly planning. If you’re worried about salaries and benefits, you can use FTE calculations to learn what you’re currently paying those working full-time hours.

There are some rules that you should be aware of before we dive into the calculation. You’ll find the answers to all these questions and more and learn how to calculate FTE step-by-step. Knowing fte meaning about their importance can help you increase business profits and prepare for the future. As easy as that, Clockify can be your ally in estimating your employee FTE for your specific needs.

Step 4. Add annual hours worked for full-time employees and part-time employees

Particularly due to the development in the part-time sector, your staff planning will be more comprehensible and controllable with this ratio. As we cover in this helpful article, there are a wealth of situations in which knowing the meaning of FTE and how to calculate it can be quite useful. It’s about assigning the best people to the task and putting them in a position to succeed (without wearing them thin). Find out about manufacturing costs and their types, and gain insights with examples.