{"id":41612,"date":"2021-03-26T18:48:10","date_gmt":"2021-03-26T16:48:10","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=41612"},"modified":"2025-11-05T15:33:59","modified_gmt":"2025-11-05T13:33:59","slug":"full-time-equivalent","status":"publish","type":"post","link":"https:\/\/factorialhr.co.uk\/blog\/full-time-equivalent\/","title":{"rendered":"Calculate the Full Time Equivalent (FTE) for Your Company"},"content":{"rendered":"<p data-pm-slice=\"1 1 []\">What is the productive capacity of your company? In other words, do you know what the <strong>full time equivalent<\/strong> is and how it can help you better understand your organisation&#8217;s needs?<\/p>\n<p>Using the full time equivalent calculation, it&#8217;s possible to <strong>identify crucial organisational needs, like whether your company needs to restructure, hire or reduce staff. <\/strong>The FTE is therefore an HR indicator that&#8217;s integral to the success of the department and the organisation as a whole.<\/p>\n<p><strong>\ud83d\udccc <a href=\"https:\/\/factorialhr.co.uk\/templates\/full-time-equivalent-calculator\">Calculate your team&#8217;s full-time equivalent (FTE) with our free calculator<\/a>.<\/strong><\/p>\n<div class=\"js-toc toc\">\n<p class=\"js-toc-title toc__title\">Table of Contents<\/p>\n<nav id=\"fac_toc_nav\" class=\"js-toc-nav toc__nav\" aria-label=\"Table of Contents\"><ol class=\"toc__list toc__list--level-1\"><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-1\" href=\"https:\/\/factorialhr.co.uk\/blog\/full-time-equivalent\/#what-is-full-time-equivalent\" title=\"What is Full Time Equivalent?\" data-target-id=\"what-is-full-time-equivalent\">What is Full Time Equivalent?<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-2\" href=\"https:\/\/factorialhr.co.uk\/blog\/full-time-equivalent\/#what-is-the-purpose-of-calculating-fte\" title=\"What is the Purpose of Calculating FTE?\" data-target-id=\"what-is-the-purpose-of-calculating-fte\">What is the Purpose of Calculating FTE?<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-3\" href=\"https:\/\/factorialhr.co.uk\/blog\/full-time-equivalent\/#how-do-you-calculate-full-time-equivalent\" title=\"How Do You Calculate Full-Time Equivalent?\" data-target-id=\"how-do-you-calculate-full-time-equivalent\">How Do You Calculate Full-Time Equivalent?<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-4\" href=\"https:\/\/factorialhr.co.uk\/blog\/full-time-equivalent\/#fte-example-calculation\" title=\"FTE Example Calculation\" data-target-id=\"fte-example-calculation\">FTE Example Calculation<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-5\" href=\"https:\/\/factorialhr.co.uk\/blog\/full-time-equivalent\/#free-fte-calculator-template\" title=\"Free FTE Calculator Template\" data-target-id=\"free-fte-calculator-template\">Free FTE Calculator Template<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-6\" href=\"https:\/\/factorialhr.co.uk\/blog\/full-time-equivalent\/#full-time-equivalent-(fte)-faqs\" title=\"Full Time Equivalent (FTE) FAQs\" data-target-id=\"full-time-equivalent-(fte)-faqs\">Full Time Equivalent (FTE) FAQs<\/a><\/li><\/ol><\/nav><\/div>\n<h2>What is Full Time Equivalent?<\/h2>\n<p>The full time equivalent, or &#8216;FTE&#8217;, is <strong>a unit of measurement that reflects an employee&#8217;s productive capacity. <\/strong>It is used to <strong>determine the number of full-time hours that all employees within a business have worked<\/strong>. The full-time equivalent converts the hours worked by part-time employees into hours worked by full-time employees.<\/p>\n<p>For example, an FTE calculation of 1.0 corresponds to the hours worked in a day for a full-time employee. In most sectors, typically, a full-time employee works 2,800 hours. Whereas, the FTE for a part-time employee working 20 hours a week would be 0.5. This helps standardize work hours and compares part-time and full-time roles effectively.<\/p>\n<p>These indexes are crucial for strategic Human Resources management as they highlight the <a href=\"https:\/\/factorialhr.co.uk\/blog\/time-management-productivity\/\" target=\"_blank\" rel=\"noopener noreferrer\">productivity<\/a> of a company. In other words, they allow you to calculate the performance of a team, department or entire organisation.<\/p>\n<p><iframe title=\"YouTube video player\" src=\"\/\/www.youtube.com\/embed\/UfkgAJ-ty-Y?si=yXIsV8GKEHhf8JiG\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2>What is the Purpose of Calculating FTE?<\/h2>\n<p>The conversion of part-time employees into full-time employees provides information on the productivity of the company&#8217;s workers, whether by team or department. This has several advantages:<\/p>\n<ul>\n<li><strong>Boosts performance analysis:<\/strong> Companies get greater insight into employee <a href=\"https:\/\/factorialhr.co.uk\/blog\/performance-improvement-plan\/\" target=\"_blank\" rel=\"noopener noreferrer\">performance<\/a>. Understanding this is more important than knowing the total number of employees or hours per week each employee works.<\/li>\n<li><strong>Supports HR management:<\/strong> Important HR decisions can be made using the full time equivalent (fte), especially in terms of people management planning. The most urgent changes in teams and trends in the job market can be better assessed.<\/li>\n<li><strong>Makes it easier to plan projects:<\/strong> Employees with different types of employment <a href=\"https:\/\/factorialhr.co.uk\/blog\/permanent-employment-contract\/\" target=\"_blank\" rel=\"noopener noreferrer\">contracts<\/a> (e.g. a full time worker and those on part-time hours) can be more easily assigned to projects by project managers, as an employee&#8217;s performance can be calculated more accurately, no matter how many hours per week they work.<\/li>\n<li><strong>Improves compliance:<\/strong> FTE can determine which labour laws apply within a company. For example, in the UK, employers must follow <a href=\"https:\/\/www.thepensionsregulator.gov.uk\/en\/business-advisers\/automatic-enrolment-guide-for-business-advisers\/duties-for-new-employers\">automatic enrolment pension duties<\/a> and payroll thresholds.<\/li>\n<li><strong>Increases comparison accuracy:<\/strong> The productive capacities of different companies and departments can be compared more easily with FTE, as well as the productivity of a part-time worker vs. full-time workers.<\/li>\n<li><strong>Reduces costs:<\/strong> Working out the full-time equivalent (FTE) of a company can help in identifying opportunities to reduce labor costs through resource optimisation, identifying outsourcing opportunities, reevaluating employee salaries and <a href=\"https:\/\/factorialhr.co.uk\/blog\/talent-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">workforce planning,<\/a> and budgeting.<\/li>\n<\/ul>\n<div class=\"factorial-banner inline-banner banner-freebie category-talent-management\"\n    data-banner-id=\"171900\"\n    data-banner-type=\"freebie\"\n    data-category=\"Talent Management\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Calculate your team&#039;s FTE with ease<\/h4>\n            \n                            <p>Simplify your workforce planning with our easy-to-use calculator to optimise staffing levels and make informed HR decisions.<\/p>\n            \n                            <a href=\"https:\/\/factorialhr.co.uk\/templates\/full-time-equivalent-calculator\"\n                    class=\"factorial-cta-button not-prose freebie\" data-cta=\"freebie\" data-cta-position=\"inline-banner\">\n                    Download for free                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/10\/29104405\/X-3.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h2>How Do You Calculate Full-Time Equivalent?<\/h2>\n<p>You can easily calculate FTE using the formula and four steps listed below.<\/p>\n<p>First, bear this in mind. Based on an <strong>FTE of 1.0<\/strong>, we calculate employees work 2,080 hours per year. This does not include holidays and days of absence. This value is used only as a basis for calculating the annual FTE and reflects the hours of an employee who works 5 days a week, 8 hours a day.<\/p>\n<p>*<em>Always calculate your FTE based on your organisation&#8217;s defined full-time hours. For example, if your company policy states full-time is 37.5 hours per week vs. 40 hours per week.<\/em><\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-172047 size-large\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2021\/03\/30122224\/Calculate-FTEs-1024x380.webp\" alt=\"FTE calculation formula\" width=\"1024\" height=\"380\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2021\/03\/30122224\/Calculate-FTEs-1024x380.webp 1024w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2021\/03\/30122224\/Calculate-FTEs-300x111.webp 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2021\/03\/30122224\/Calculate-FTEs-768x285.webp 768w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2021\/03\/30122224\/Calculate-FTEs-1536x571.webp 1536w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2021\/03\/30122224\/Calculate-FTEs-2048x761.webp 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h3>Full Time Equivalent (FTE) Calculator Formula<\/h3>\n<p>It is possible to calculate the full time equivalent using the following simple formula:<\/p>\n<p><strong>(Total number of hours for all part-time employees + the total number of hours for all full-time employees) \/ period for calculation (2080 for annual FTE, 173.33 for monthly FTE or 8 for daily FTE ) = Final FTE<\/strong><\/p>\n<p>Using this formula, follow these 4 steps:<\/p>\n<h3><strong>Step 1<\/strong><\/h3>\n<p>First, it is necessary to determine the <strong>number of hours worked by part-time employees<\/strong> (i.e. part time FTE).<\/p>\n<p><strong>Formula:<\/strong><\/p>\n<p>Part-time employees x weekly hours x number of weeks (that an employee has worked) = total hours worked over the given time period<\/p>\n<p><strong>Example:<\/strong><\/p>\n<p>5 part-time employees work 25 hours a week for 30 weeks.<\/p>\n<p>2 part-time employees work 10 hours a week for 25 weeks.<\/p>\n<p><strong>Account:<\/strong><\/p>\n<p>5 x 25 x 30 = 3750 hours<\/p>\n<p>2 x 10 x 25 = 500 hours<\/p>\n<p>To obtain the total number of hours worked by all part-time employees, add the two results together:<\/p>\n<p>3750 + 500 = 4250 part-time<\/p>\n<h3>Step 2<\/h3>\n<p>Now determine the <strong>number of hours worked by full-time employees<\/strong> over a given period (i.e. full time FTE). Full-time employees are those who work full time schedule, i.e. a minimum of 30 and a maximum of 40 hours per week and more than 120 days a year. Use each employee&#8217;s scheduled hours for your calculation.<\/p>\n<p><strong>Formula:<\/strong><\/p>\n<p>Full-time employees x working hours per week (40) x 52 weeks per year = total working hours of full-time employees per year (or &#8216;annual hours worked&#8217;)<\/p>\n<p><strong>Example:<\/strong><\/p>\n<p>7 full-time employees work 40 hours a week<\/p>\n<p><strong>Account:<\/strong><\/p>\n<p>7 x 40 x 52 = 14,560 hours full time<\/p>\n<h3>Step 3<\/h3>\n<p>Now <strong>add the total number of hours worked by full-time employees to that of part-time workers<\/strong> to get the total number of hours for all employees.<\/p>\n<p><strong>Formula:<\/strong><\/p>\n<p>Total hours of full-time employees + total hours of part-time employees = total hours worked by all employees per year<\/p>\n<p><strong>Account:<\/strong><\/p>\n<p>4250 (part-time) + 14,560 (full-time) = 18,810 total hours<\/p>\n<h3>Step 4<\/h3>\n<p>In the last step, simply <strong>divide the total number of hours of full-time employees and part-time employees<\/strong> (in our example 410 hours) by the number of regular full-time hours (in our example 2,080 hours per year or 40 hours x 52 weeks ) to calculate the full time equivalent for a certain period of time.<\/p>\n<p><strong>Formula:<\/strong><\/p>\n<p>Total number of hours for all employees \/ 2080 = FTE<\/p>\n<p><strong>Account:<\/strong><\/p>\n<p>18,810 (total number of hours) \/ 2,080 = <strong>9.04 FTE<\/strong><\/p>\n<p>To obtain the full time equivalent for a month, divide the total number of hours by 173.33 (2,080 hours \/ 12 months).<\/p>\n<p>For example, if the total number of hours in the month of March were 2,800, the account would look like this:<\/p>\n<p>2,800 (total number of hours) \/ 173.33 = <strong>16.15 FTE (FTE)<\/strong><\/p>\n<p>To find the equivalent of a full-time day, divide the total number of hours by 8.<\/p>\n<p>For example, if the total number of hours were 75, the calculation would look like this:<\/p>\n<p>75 (total number of hours) \/ 8 = 9.38 FTE (FTE)<\/p>\n<p><strong>The result is the full-time equivalent of 9.04.<\/strong> With 14 employees, 7 full-time and 7 part-time, the staffing capacity is 9.04 full-time employees per year.<\/p>\n<h2><strong>FTE Example Calculation<\/strong><\/h2>\n<p>10 people are employed in a company. Five of them work full-time (40 hours per week), three occupy a part-time position each working 20 hours a week and the other two each work 10 hours per week. The FTE or FTE value, in this case, is 7.0.<\/p>\n<p><strong>The full time equivalent calculation:<\/strong><\/p>\n<p>A full-time position corresponds to an FTE calculation of 1.0. Accordingly, 5 full-time positions result in an FTE of 5.0.<\/p>\n<p>A part-time position (20 hours) corresponds to an FTE of 0.5. With three part-time positions, this results in a value of 1.5.<\/p>\n<p>10 hours per week correspond to an FTE of 0.25. With two 10-hour digits, this results in an FTE value of 0.5.<\/p>\n<p>As you can see, the part-time employees are converted into the performance of a full-time employee. So, the FTE calculation does not indicate the number of employees in a company, but the equivalent of a full-time employee.<\/p>\n<div class=\"factorial-banner inline-banner banner-freebie category-talent-management\"\n    data-banner-id=\"171900\"\n    data-banner-type=\"freebie\"\n    data-category=\"Talent Management\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Calculate your team&#039;s FTE with ease<\/h4>\n            \n                            <p>Simplify your workforce planning with our easy-to-use calculator to optimise staffing levels and make informed HR decisions.<\/p>\n            \n                            <a href=\"https:\/\/factorialhr.co.uk\/templates\/full-time-equivalent-calculator\"\n                    class=\"factorial-cta-button not-prose freebie\" data-cta=\"freebie\" data-cta-position=\"inline-banner\">\n                    Download for free                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/10\/29104405\/X-3.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h2>Free FTE Calculator Template<\/h2>\n<p>You can use our <a href=\"https:\/\/factorialhr.co.uk\/templates\/full-time-equivalent-calculator\" target=\"_blank\" rel=\"noopener noreferrer\">free FTE template<\/a> to easily work out your company&#8217;s full time equivalent.<\/p>\n<p>Just indicate how many employees work at your company, how many actual hours they work a week and for how many weeks. Our model will then instantly calculate the full time equivalent for you.<\/p>\n<h2>Full Time Equivalent (FTE) FAQs<\/h2>\n<p data-start=\"1943\" data-end=\"1996\"><strong data-start=\"1943\" data-end=\"1996\">What is the difference between FTE and headcount?<\/strong><\/p>\n<p data-start=\"1943\" data-end=\"1996\">FTE refers to the total equivalent number of full-time employees, which includes part-time work, while headcount refers to the actual number of employees at your company.<\/p>\n<p data-start=\"2007\" data-end=\"2154\"><strong data-start=\"2162\" data-end=\"2205\">How can FTE impact workforce budgeting?<\/strong><\/p>\n<p data-start=\"2216\" data-end=\"2354\">FTE is a crucial number to understand, as it helps to accurately measure and allocate resources accordingly. In addition, it helps managers and HR professionals manage payroll efficiently for both full-time and part-time employees.<\/p>\n<p data-start=\"2362\" data-end=\"2414\"><strong data-start=\"2362\" data-end=\"2414\">Why is calculating FTE important for compliance?<\/strong><\/p>\n<p data-start=\"2362\" data-end=\"2414\">To comply with certain regulations, such as healthcare and tax laws, companies need to report to FTE to determine eligibility for benefits and other mandates.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the productive capacity of your company? In other words, do you know what the full time equivalent is and how it can help you better understand your organisation&#8217;s needs? Using the full time equivalent calculation, it&#8217;s possible to identify crucial organisational needs, like whether your company needs to restructure, hire or reduce staff.<a href=\"https:\/\/factorialhr.co.uk\/blog\/full-time-equivalent\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":97,"featured_media":41661,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[337],"tags":[],"class_list":["post-41612","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-talent"],"acf":{"topics":"talent"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Full-Time Equivalent (FTE) &amp; How Do You Calculate It?<\/title>\n<meta name=\"description\" content=\"Full time equivalent( FTE) is a standardised metric to forecast your company&#039;s potential productivity. Download your free FTE calculator.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/factorialhr.co.uk\/blog\/full-time-equivalent\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Calculate the Full Time Equivalent (FTE) for Your Company\" \/>\n<meta property=\"og:description\" content=\"Full time equivalent( FTE) is a standardised metric to forecast your company&#039;s potential productivity. 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