FTE Calculator, Employee Cost, and Revenue Per Employee

The calculation is straightforward — divide the employee’s scheduled hours by the number of hours that represent an official weekly full-time schedule in a company (e.g., 40 hours per week). With this FTE Calculator, you can quickly calculate how many full-time equivalent employees are on your team. As it helps you work out how many manhours of work are being done, FTE calculation is an important part of business planning. The part-time employees, on the other hand, work 20 hours per week and 25 weeks out of the year. Project managers and budget analysts use FTE (Full-Time Equivalent) to convert part-time employee hours into full-time numbers. When estimating labor and overtime costs, you can use FTE figures to determine if you can afford a new hire.

• In a recent conversation, Toggl Track’s CFO shared her process for determining whether or not the company is ready for a new hire.
• Ideally, you would be using a time tracking platform with reporting features to track this data in one central location.
• You can then determine the equivalent number of full-time workers you employ.
• For additional clarity, she researches industry averages to determine what Toggl Track can offer its employees.
• Full-time employees usually work more than 30 hours a week or more than 4 days a week.

Step 6. Calculate the total FTE

Clockify is a time tracker and timesheet app that lets you track work hours across projects. The Paycheck Protection Program (PPP) provides funds for small business owners to help them cover up to 24 weeks of payroll or other costs such as utilities, rent, etc. Some laws, such as the Affordable Care Act (ACA), specifically define how an FTE is calculated and require employers to count FTEs to determine how the law applies to their organization.

What Is an FTE Salary and How to Calculate It?

If you find yourself grabbing a pen and paper to do this step, you’re leaving a lot of room for error. If businesses or universities count FTEs to qualify for federal programs or meet federal regulations, the federal government will provide those FTE calculation rules. If an employee is set to 20 hours per a 40-hour workweek, then they’re considered 0.5 FTE.

Calculating FTEs

FTE for one full-time employee equals 1, for 3 employees, equals 3. Regardless of the type of business you’re in, it’s important to keep an updated number of your employees and the hours they dedicate to their work duties. It can also do the same for a full-time employee who hasn’t completed https://www.bookstime.com/ a whole year of work yet. It shows the number of work hours of an employee compared to a full-time employee. A full-time equivalent, often shortened to FTE, serves as a standard measure for employed individuals or students, allowing for comparison even if their weekly working hours vary.

That said, full-time equivalent (FTE) is a metric used to determine the total number of full-time workers that you have in an entire organization. In this article, we’ll teach you fte meaning everything that you need to know about calculating this metric and why it matters. The company adds the hours worked by part-time employees to those worked by full-time employees.

An FTE salary is an employee salary converted into a full-time equivalent salary within a full year, regardless of whether the said employee holds a full-time or part-time position. The actual workload is not taken into consideration for this calculation. If you, for instance, choose the first method, enter all the actual hours worked (including PTO) and divide that number by 2,080 to get the final FTE. First and foremost, make a list of all your employees within an organization.

Now, the exact number of hours that a 100% FTE represents will depend on your company’s policies and the various labor laws in your state, country, and more. With FTE, you can get a clearer picture of how your employees are performing in their jobs. There are numerous reasons why calculating FTE can prove meaningful to your company.

Determine Which Employees Are Full Time vs Part Time

Obviously, these multipliers only provide a rough estimate of your costs — and vary widely from the office to the factory floor. It calculates FTE based on the percentage of hours worked relative to full-time hours. Proportional FTE calculation is used when employees work part-time or have variable work hours. Jennifer Soper has 25+ years of writing and content design experience, working with small businesses and Fortune 100 companies.

What is 75% FTE? When is 75% FTE or higher considered full-time?