Full-Time Equivalent (FTE) Calculator
Calculate FTE for ACA Compliance, PPP Loans & Workforce Planning
Quick FTE Calculator
Detailed FTE Calculator (By Employee)
ACA (Affordable Care Act) FTE Calculator
FTE Calculation Results
What is Full-Time Equivalent (FTE)?
👥 FTE Meaning & Definition
Full-Time Equivalent (FTE) is a unit of measurement that represents the workload of a full-time employee. It converts the hours worked by part-time employees into the equivalent number of full-time employees. For example, two employees working 20 hours each equal 1.0 FTE (if 40 hours = 1 FTE). FTE is used for budgeting, compliance (ACA, PPP), staffing analysis, and workforce planning.
- Define Full-Time Hours: Typically 40 hours/week (or 30 hours for ACA purposes).
- Count Full-Time Employees: Each full-time employee = 1.0 FTE.
- Calculate Part-Time FTE: Part-time hours ÷ Full-time hours = FTE.
- Sum Total FTE: Add full-time FTE + part-time FTE for total.
FTE Calculation Formulas
Basic FTE Formula
Total FTE Calculation
ACA Monthly FTE
Annual FTE Average
FTE Standards by Law/Program
| Law/Program | Full-Time Definition | FTE Threshold | Purpose |
|---|---|---|---|
| ACA (Obamacare) | 30+ hours/week | 50 FTE | Employer mandate for health insurance |
| PPP Loans (SBA) | 40 hours/week | Varies | Loan amount & forgiveness |
| FMLA | N/A | 50 employees | Family leave eligibility |
| WARN Act | 20+ hours/week | 100 employees | Layoff notification |
| EEOC/Title VII | N/A | 15+ employees | Discrimination laws |
| General HR | 40 hours/week | N/A | Budgeting, planning |
FTE Calculation Examples
📝 Example 1: Small Business
Employees:
- 8 full-time employees (40 hrs/week each)
- 4 part-time employees (20 hrs/week each)
Calculation:
Full-Time FTE: 8 × 1.0 = 8.0 FTE
Part-Time FTE: 4 × (20 ÷ 40) = 4 × 0.5 = 2.0 FTE
Total FTE: 8.0 + 2.0 = 10.0 FTE (12 total headcount)
📝 Example 2: ACA Calculation
Employees:
- 40 employees working 30+ hours/week
- 25 part-time employees with total 800 hours/month
ACA Calculation (30 hrs = FT, 120 hrs/month):
Full-Time: 40 FTE
Part-Time: 800 ÷ 120 = 6.67 FTE
Total ACA FTE: 40 + 6.67 = 46.67 FTE (Under 50 threshold ✓)
Why FTE Matters
📊 Business Uses
- Budget planning & forecasting
- Staffing level analysis
- Productivity measurement
- Cost-per-employee calculations
- Project resource allocation
- Benchmark comparisons
⚖️ Compliance Uses
- ACA employer mandate (50+ FTE)
- PPP loan forgiveness
- FMLA eligibility
- WARN Act requirements
- EEO-1 reporting
- Grant applications
Official Resources
Frequently Asked Questions
FTE stands for Full-Time Equivalent. It's a unit measuring workload equal to one full-time employee. It standardizes headcount by converting part-time hours into equivalent full-time positions. For example, two half-time employees = 1.0 FTE.
FTE = Total Hours Worked ÷ Full-Time Hours. If full-time is 40 hours: one person working 40 hrs = 1.0 FTE; one person working 20 hrs = 0.5 FTE; ten people working 20 hrs each = 5.0 FTE.
Yes! 1.0 FTE equals one full-time employee's workload. If your company defines full-time as 40 hours/week, then 1.0 FTE = 40 hours. An employee working exactly full-time hours = 1.0 FTE.
0.5 FTE equals half the workload of a full-time employee. If full-time is 40 hours, then 0.5 FTE = 20 hours/week. This could be one employee at 20 hrs or multiple employees totaling 20 hrs.
Under ACA, employers with 50+ FTE (using 30 hours as full-time) must offer affordable health insurance. Part-time hours are divided by 120 (monthly) to calculate their FTE contribution.
It depends on the context. For general HR purposes, 40 hours is standard. For ACA compliance, 30 hours = full-time. For PPP loans, SBA uses 40 hours. Always check the specific program's requirements.
Headcount = total number of employees regardless of hours. FTE = standardized measure of workload. A company with 10 full-time and 20 half-time employees has 30 headcount but only 20 FTE (10 + 10).
Generally no. Independent contractors (1099 workers) typically don't count toward FTE for ACA, FMLA, or most employment laws. Only W-2 employees are usually counted. However, some grant programs may include contractors.
Technically yes, if someone works overtime (e.g., 60 hrs/week = 1.5 FTE). However, most calculations cap individual FTE at 1.0 since the purpose is to measure positions, not overtime hours.
For PPP, use 40 hours as full-time. Calculate average FTE over the reference period. Employees working 40+ hours = 1.0 FTE. Part-time employees = actual hours ÷ 40. Sum all FTEs for total.
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Last Updated: January 2025