Fte Calculator

FTE Calculator

Calculated FTE:

' + totalActualHours.toFixed(2) + ' hours

' + fte.toFixed(2) + ' FTEs

Understanding Full-Time Equivalent (FTE)

The Full-Time Equivalent (FTE) is a unit of measure that indicates the workload of an employed person (or student) in a way that makes workloads comparable across various contexts. FTE is often used to convert the hours worked by part-time employees into the equivalent number of full-time employees. It's a crucial metric for businesses, educational institutions, and government agencies for budgeting, staffing, and compliance purposes.

Why is FTE Important?

• Budgeting and Planning: FTE helps organizations accurately forecast labor costs and allocate resources. By understanding the total FTEs, businesses can make informed decisions about hiring, layoffs, and project staffing.
• Staffing Levels: It provides a standardized way to measure the size of a workforce, regardless of whether employees work full-time or part-time. This is essential for maintaining appropriate staffing levels to meet operational demands.
• Compliance and Regulations: Many government regulations, especially in areas like healthcare reform (e.g., Affordable Care Act in the US), use FTE counts to determine employer obligations, such as offering health insurance benefits.
• Grant Applications: For non-profits and research institutions, grant applications often require reporting FTEs to justify funding requests and demonstrate project capacity.
• Productivity Analysis: FTE can be used to analyze productivity per full-time equivalent, helping to identify efficiencies or areas needing improvement.

How to Calculate FTE

The basic principle of FTE calculation involves comparing the total hours worked by all employees in a given period to the standard number of hours a single full-time employee would work in that same period. The most common standard for a full-time workweek is 40 hours.

The formula used in this calculator is:

FTE = (Number of Employees × Average Weekly Hours per Employee) / Standard Full-Time Hours per Week

Let's break down the components:

• Number of Employees: This is the total count of individuals whose hours you are aggregating.
• Average Weekly Hours per Employee: This is the average number of hours each employee in your group works in a typical week. If you have a mix of full-time and part-time staff, you would sum all their weekly hours and divide by the total number of employees, or calculate it for specific groups.
• Standard Full-Time Hours per Week: This is the benchmark for what constitutes a full-time workweek in your organization or industry. Commonly, this is 40 hours, but it can vary (e.g., 35 or 37.5 hours).

Examples of FTE Calculation

Example 1: All Full-Time Employees

Imagine you have 5 employees, and each works a standard 40 hours per week. The standard full-time workweek is also 40 hours.

• Number of Employees: 5
• Average Weekly Hours per Employee: 40 hours
• Standard Full-Time Hours per Week: 40 hours

Calculation:

Total Actual Hours = 5 employees × 40 hours/employee = 200 hours

FTE = 200 hours / 40 hours = 5 FTEs

This makes sense: 5 full-time employees equate to 5 FTEs.

Example 2: Mix of Full-Time and Part-Time Employees

Consider a team with 2 full-time employees (40 hours/week each) and 4 part-time employees (20 hours/week each). The standard full-time workweek is 40 hours.

• Number of Employees: 6 (2 full-time + 4 part-time)
• Total Weekly Hours: (2 employees × 40 hours) + (4 employees × 20 hours) = 80 + 80 = 160 hours
• Average Weekly Hours per Employee: 160 hours / 6 employees = 26.67 hours (approximately)
• Standard Full-Time Hours per Week: 40 hours

Using the calculator's inputs:

• Number of Employees: 6
• Average Weekly Hours per Employee: 26.67 hours
• Standard Full-Time Hours per Week: 40 hours

Calculation:

Total Actual Hours = 6 employees × 26.67 hours/employee = 160.02 hours

FTE = 160.02 hours / 40 hours = 4.00 FTEs

Alternatively, you can calculate FTE for each group and sum them:

• Full-time FTE: (2 employees * 40 hours) / 40 hours = 2 FTEs
• Part-time FTE: (4 employees * 20 hours) / 40 hours = 80 / 40 = 2 FTEs
• Total FTE: 2 + 2 = 4 FTEs

Both methods yield the same result, demonstrating that the 6 employees collectively represent the workload of 4 full-time employees.

Example 3: Only Part-Time Employees

You have 8 part-time employees, each working 25 hours per week. The standard full-time workweek is 40 hours.

• Number of Employees: 8
• Average Weekly Hours per Employee: 25 hours
• Standard Full-Time Hours per Week: 40 hours

Calculation:

Total Actual Hours = 8 employees × 25 hours/employee = 200 hours

FTE = 200 hours / 40 hours = 5 FTEs

Even though you have 8 individuals, their combined effort is equivalent to 5 full-time employees.

Use the calculator above to quickly determine the FTE for your team or organization by inputting the number of employees, their average weekly hours, and your standard full-time workweek hours.