Full-Time Equivalent (FTE)
Employee Calculator
Convert part-time and full-time employee hours into full-time equivalents
Full-time equivalent employees:
26.5
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No
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No
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FTE Basics
FTE is a way to measure the total number of work hours contributed by both full-time and part-time
employees in your organization during the year.
Calculating it is essential for analyzing your operations, benchmarking against industry standards,
budgeting, and strategic planning.
Determine eligibility for benefits
Ensure you meet minimum coverage requirements under the Affordable Care Act.
Ensure
compliance
Ascertain whether you qualify as an Applicable Large Employer (ALE).
Improve project management
Determine the number of full-time employees needed for a specific project.
Make informed hiring decisions
Ascertain whether you qualify as an Applicable Large Employer (ALE).
How to Calculate FTE Manually
Determine total hours worked:
Gather the total number of hours worked by all employees over a specific period (usually a week
or a month). This includes both full-time and part-time employees.
For example, if you have 5 full-time employees working 40 hours each per week and 3 part-time
employees working 20 hours each per week, the calculation will look like this:
5 × 40 = 200 hours
3 × 20 = 60 hours
Total hours worked: 200 + 60 = 260 hours
Define full-time hours:
Determine what constitutes full-time work for your organization. Typically, this is 40 hours per
week, but it can vary.
Divide the total hours worked by the number of hours representing full-time work:
FTE = Total Hours Worked / Full-Time Hours
FTE = 260 / 40 = 6.5
FTE Calculation Tips
Calculating FTEs accurately is all about knowing who to include and exclude in your calculations and
considering real-world factors that affect work hours.
Always include all full-time employees in your group. If your business is affiliated with another
employer, operates under common ownership, or is part of a controlled group, all full-time employees
from these entities should be counted.
If your business operates in multiple states, include employees from other states under the same
common group, even if you’re enrolling in separate state Small Business Health Options Program
(SHOP) marketplaces.
Exclude the owners of a sole proprietorship, partners, or shareholders owning more than 2% of an S
corporation, and the owners of more than 5% of other businesses should also be excluded.
Exclude the seasonal workers who work 120 days or less in a year, independent contractors, and
individuals enrolled in COBRA or retired.
Include only those part-time employees who work an average of less than 30 hours per week.
Employees do not usually work a full 52 weeks per year due to various factors. So, your company’s
actual FTE hours might be 300-400 hours less than the theoretical maximum of 2,080 hours.
