How do you calculate FTE from hours worked?

First define how many hours count as one full‑time employee for your period (for example, 40 hours per week). Then add up all hours worked by part‑time and temporary staff and divide by the full‑time hours. Finally, add the number of full‑time employees. Formula: Total FTE = Full‑time headcount + (Total part‑time hours ÷ Full‑time hours).

What is a typical full‑time hours value for FTE?

Many organizations use 40 hours per week or 2,080 hours per year (40 × 52). However, some countries or companies use 37.5 hours per week, 35 hours per week, or other values. For compliance calculations such as ACA in the U.S., specific rules may apply, for example 30 hours per week as the full‑time threshold.

What is the difference between headcount and FTE?

Headcount is the number of individual people on your payroll, regardless of how many hours they work. FTE converts their hours into an equivalent number of full‑time employees. For example, 2 half‑time employees count as 2 in headcount but only 1.0 in FTE.

How is FTE used for budgeting and staffing?

Managers use FTE to plan staffing levels, compare workloads between departments, and build salary budgets. Because FTE is based on hours, it lets you compare teams with different mixes of full‑time and part‑time staff on an apples‑to‑apples basis.

Is this FTE calculator suitable for ACA/IRS calculations?

This calculator follows the general FTE formula and includes an ACA‑style mode that caps part‑time hours at 30 hours per week per employee. However, actual ACA and IRS rules are complex and may require additional steps. Always consult the official guidance or a qualified tax professional for compliance decisions.

FTE Calculator (Full‑Time Equivalent)

Q: What is FTE (full‑time equivalent)?

FTE stands for full‑time equivalent. It expresses the total workload of employees as if all hours were worked by full‑time staff. One FTE equals the hours worked by a single full‑time employee over a given period, such as 40 hours per week or 2,080 hours per year.

Convert full‑time and part‑time hours into full‑time equivalent employees (FTE) for staffing, budgeting, and compliance analysis.

Period

Full‑time hours per period

Common values: 40/week, 160/month, 2,080/year.

Compliance mode

ACA mode caps hours per employee at 30/week equivalent.

Full‑time employees

Each full‑time employee counts as 1.0 FTE.

Total part‑time hours

Sum of all part‑time/temporary hours in the period.

Approx. part‑time headcount (optional)

Used only for ACA‑style hour caps.

Optional: Enter individual part‑time employees (for more precise ACA capping)

If you prefer, list each part‑time employee and their hours. The calculator will sum them and apply any ACA‑style caps per employee.

#	Employee name / ID	Hours this period	Remove

If you use this table, the total part‑time hours field above will be overwritten from the table.

Results

Total FTE

9.5

Full‑time + converted part‑time FTE for the selected period.

Full‑time FTE 8.0

Part‑time FTE 1.5

Total part‑time hours (adjusted) 60.0

Full‑time hours per period 40

What is FTE (Full‑Time Equivalent)?

FTE (full‑time equivalent) is a way to express the total workload of your workforce as if all hours were worked by full‑time employees. Instead of just counting people (headcount), FTE converts hours into standardized full‑time units.

For example, if full‑time is defined as 40 hours per week:

1 employee working 40 hours/week = 1.0 FTE
2 employees working 20 hours/week each = 2 × 0.5 = 1.0 FTE
8 full‑time + 3 part‑time at 20 hours/week = 8 + (60 ÷ 40) = 9.5 FTE

FTE formula

Full‑time FTE = Number of full‑time employees
Part‑time FTE = Total part‑time hours ÷ Full‑time hours per period

Total FTE = Full‑time FTE + Part‑time FTE

The key is to use the same period and full‑time hours definition for all employees (for example, per week, per month, or per year).

How to use the FTE calculator

Select the period. Choose whether you want FTE per week, per month, per quarter, or per year.
Set full‑time hours. Enter how many hours count as one full‑time employee in that period (e.g. 40 hours per week, 160 per month, 2,080 per year).
Enter full‑time headcount. Count how many employees meet your full‑time definition.
Enter part‑time hours. Add up all hours worked by part‑time, temporary, or seasonal staff in the same period and enter the total.
(Optional) List individual part‑time employees. Expand the advanced section to enter each part‑time employee’s hours. This is useful when applying per‑employee caps (e.g. ACA rules).
Click “Calculate FTE”. The tool shows full‑time FTE, part‑time FTE, and total FTE for the selected period.

Example: Weekly FTE calculation

Suppose your company defines full‑time as 40 hours per week and you have:

8 full‑time employees
3 part‑time employees working 20, 15, and 25 hours per week

Total part‑time hours = 20 + 15 + 25 = 60 hours.

Full‑time FTE = 8
Part‑time FTE = 60 ÷ 40 = 1.5
Total FTE = 8 + 1.5 = 9.5 FTE per week

Common FTE use cases

Workforce planning: Compare staffing levels between teams or departments.
Budgeting & forecasting: Translate FTE into salary and benefit costs.
Project planning: Estimate how many FTEs are needed to deliver a project on time.
Compliance analysis: Estimate FTE for regulations that depend on employer size (e.g. health coverage rules).

Headcount vs FTE

Headcount is the number of people on your payroll. FTE is the number of full‑time equivalent positions based on hours worked.

10 part‑time employees working 10 hours/week each = headcount 10, but only 2.5 FTE (if full‑time is 40 hours/week).
5 full‑time + 5 half‑time employees = headcount 10, but 7.5 FTE.

ACA‑style FTE considerations (U.S.)

For certain U.S. regulations (such as the Affordable Care Act), “full‑time” is often defined as 30 or more hours per week, and specific formulas are used to convert part‑time hours into FTEs. Our ACA‑style mode:

Caps each part‑time employee at the equivalent of 30 hours per week when converting to FTE.
Helps you approximate whether you are near common thresholds (for example, 50 FTE).

However, official ACA and IRS rules are more detailed and may require multi‑month averaging and other adjustments. Always refer to the official guidance or consult a qualified tax or legal professional before making compliance decisions.

Limitations & assumptions

The calculator assumes all hours entered are paid working hours in the chosen period.
Overtime is treated as additional hours and increases FTE unless you adjust the full‑time hours definition.
Different countries and industries may use different full‑time thresholds (e.g. 35 or 37.5 hours/week).

This tool is for planning and educational purposes only and does not constitute legal, tax, or HR advice.

FTE Calculator – Frequently Asked Questions

What is FTE (full‑time equivalent)?

FTE stands for full‑time equivalent. It converts the total hours worked by your employees into the number of full‑time employees that would work the same hours. One FTE equals the hours worked by a single full‑time employee in the chosen period (week, month, or year).

How do I choose the right full‑time hours value?

Use the definition your organization or local law uses for full‑time work. In many places this is 40 hours per week (2,080 per year), but some employers use 37.5 or 35 hours. For regulatory calculations (like ACA), follow the official guidance, which often uses 30 hours/week as the full‑time threshold.

Can I use this FTE calculator for multiple locations or departments?

Yes. You can run the calculator separately for each location or department, or sum all hours across the organization and run one combined calculation. Just be consistent with the period and full‑time hours definition you use.

Does FTE include contractors or freelancers?

That depends on your purpose. For internal capacity planning, you may choose to include contractors by converting their hours to FTE. For legal or tax purposes, you must follow the specific definitions in the relevant regulations, which may exclude independent contractors.

Full‑Time Equivalent Calculator