FTE Calculator
Calculate Full-Time Equivalent employees for workforce planning
Calculate FTE
Typical standard: 40 hours/week (US), 37.5 hours/week (UK)
👔 Full-Time Employees
⏰ Part-Time Employees
FTE Results
📐 Calculation Formula
FTE = Total Working Hours per Week ÷ Standard Full-Time Hours
= (120 + 100) ÷ 40
= 220 ÷ 40
= 5.5 FTE
📊 Workforce Breakdown
💡 Workforce Insights
🏦 PPP Loan Forgiveness FTE
For the Paycheck Protection Program, FTE is calculated differently. Employees working 40+ hours/week = 1 FTE. Part-time hours are summed and divided by 40.
* PPP FTE calculation: (5 × 20) ÷ 40 = 2.5 part-time FTE
💰 Estimated Labor Costs
Based on 220 hours/week at an estimated rate of $25/hour
* This is an estimate. Actual costs vary based on wages, benefits, taxes, and other factors.
Example Calculation
Small Business Example
Scenario: Retail store with mixed staff
Full-Time: 3 employees × 40 hours/week = 120 hours
Part-Time: 5 employees × 20 hours/week = 100 hours
Total Hours: 120 + 100 = 220 hours/week
FTE Calculation
FTE = Total Hours ÷ Standard Full-Time Hours
FTE = 220 hours ÷ 40 hours
FTE = 5.5 full-time equivalent employees
Interpretation
This business has 5.5 FTE employees, meaning the workload is equivalent to having 5 full-time employees and 1 part-time employee working 20 hours. This metric helps with budgeting, productivity tracking, and comparing staffing across different periods or locations.
Standard Work Hours
* Standard hours vary by country and industry
When to Use FTE
Budget planning and forecasting labor costs
Project resource allocation and timeline estimation
Comparing workforce across different periods
PPP loan forgiveness applications
Productivity and efficiency analysis
Benefits eligibility (often requires 0.5+ FTE)
Understanding Full-Time Equivalent (FTE)
What is FTE?
Full-Time Equivalent (FTE) is a unit that measures the total amount of work done by employees, standardized to the hours worked by one full-time employee. It allows businesses to compare and analyze workforce capacity regardless of whether employees work full-time or part-time.
Why Calculate FTE?
- •Standardizes workforce measurement across different schedules
- •Helps with budget planning and labor cost forecasting
- •Essential for project management and resource allocation
- •Required for PPP and other government programs
FTE Formula
Standard FTE Formula:
FTE = Total Working Hours per Week ÷ Standard Full-Time Hours per Week
Example: 220 hours ÷ 40 hours = 5.5 FTE
Key Components
- Total Hours: Sum of all employee hours per week
- Standard Hours: Typical full-time hours (usually 40/week)
- FTE Result: Number of full-time equivalent positions
Common FTE Scenarios
Scenario 1
1 employee working 40 hours/week
= 1.0 FTE
Scenario 2
2 employees each working 20 hours/week
= 1.0 FTE
Scenario 3
4 employees each working 10 hours/week
= 1.0 FTE
PPP Loan Forgiveness FTE Rules
The Paycheck Protection Program has specific rules for calculating FTE:
Full-Time FTE
- • Employees working ≥40 hours/week = 1.0 FTE
- • Maximum of 1.0 FTE per employee
- • Overtime hours don't increase FTE above 1.0
Part-Time FTE
- • Sum all part-time hours per week
- • Divide total by 40 hours
- • Result is part-time FTE count
Benefits of Tracking FTE
✅ Business Planning
- • Accurate labor cost forecasting
- • Better resource allocation
- • Improved project timeline estimates
- • Standardized productivity metrics
✅ Compliance & Reporting
- • Required for PPP loan forgiveness
- • Benefits eligibility determination
- • Government reporting requirements
- • ACA (Affordable Care Act) compliance
FTE vs Headcount
| Metric | FTE | Headcount |
|---|---|---|
| Definition | Work capacity measurement | Number of individual employees |
| Calculation | Based on hours worked | Simple count of people |
| Best For | Budget planning, productivity | HR management, facility planning |
| Example | 2 part-time = 1 FTE | 2 part-time = 2 headcount |
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