United Calculators

FTE Calculator
Calculate Full-time Equivalent employees with flexible time periods

Full-time Standard

Max: 168 hours/week

Standard: 40 hours per Week

Employee Hours

1.00 FTE

40.0 hrs/week

FTE Calculation Results

Total Employees

1

Total Hours/Week

40.0

Total FTE

1.00

Annual Hours

2080

Calculation Breakdown:

Total Weekly Hours: 40.0 hours/week

Full-time Standard: 40.0 hours/week

Total Annual Hours: 2080 hours/year

FTE Calculation: 40.0 ÷ 40.0 = 1.00

Individual Employee FTE:

Employee 1:40 hrs/week = 1.00 FTE
What is FTE?

Full-time Equivalent (FTE) is a unit of measurement that represents the workload of an employed person in a standardized way. It's used to convert part-time and full-time employees into a single metric.

One FTE equals one employee working full-time for one year. For example:

  • 1 full-time employee (40 hours/week) = 1.0 FTE
  • 2 part-time employees (20 hours/week each) = 1.0 FTE
  • 1 part-time employee (30 hours/week) = 0.75 FTE
How to Calculate FTE?

FTE calculation involves converting all employee work hours into full-time equivalents:

Formula:

FTE = Total Hours Worked ÷ Standard Full-time Hours

Steps:

  1. Add up all employee hours for the period
  2. Divide by standard full-time hours (usually 40/week or 2,080/year)
  3. Round to appropriate decimal places
What is the Purpose of FTE?

FTE calculations serve multiple important business and compliance purposes:

Workforce Planning

Compare staffing levels across departments and time periods

Budget Planning

Calculate labor costs and plan hiring budgets

Compliance Reporting

Meet regulatory requirements for various programs

Benefits Administration

Determine eligibility for health insurance and other benefits

FTE in PPP Loan Forgiveness

For Paycheck Protection Program (PPP) loan forgiveness, FTE calculations are crucial for determining the reduction in loan forgiveness amount.

Key PPP FTE Requirements:

  • Calculate average FTE for reference period
  • Calculate average FTE for covered period
  • Compare ratios to determine reduction
  • 40 hours per week = 1.0 FTE (capped at 1.0)

Note: PPP forgiveness calculations have specific rules. Consult with your accountant or SBA guidelines for official calculations.

Frequently Asked Questions

What's considered full-time for FTE calculations?

Typically 40 hours per week or 2,080 hours per year, but this can vary by organization and specific calculation requirements.

How do I handle employees who work more than 40 hours?

For most FTE calculations, employees are capped at 1.0 FTE regardless of overtime hours. However, some calculations may include overtime.

Can FTE be used for international employees?

Yes, but adjust the full-time standard based on local labor laws and standard working hours in each country.