What Is FTE (Full-Time Equivalent) and How Is It Calculated?
October 23, 2026
FTE (Full-Time Equivalent) is an HR and budgeting metric that expresses part-time hours as a fraction of a standard full-time schedule, calculated as: FTE = Actual Hours Worked ÷ Standard Full-Time Hours.
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An employee working 25 hours/week, against a standard full-time schedule of 40 hours/week:
- FTE: 25 ÷ 40 = 0.625
Why Organizations Use FTE
FTE allows an organization to express a mix of full-time and part-time staff as a single comparable headcount figure for budgeting and planning purposes — two employees each working 0.5 FTE (20 hours/week) represent roughly the same staffing capacity as one full-time employee, which is useful for workforce planning even though they're two separate people.
Frequently Asked Questions
What does FTE stand for?
Full-Time Equivalent.
How is FTE calculated?
Actual hours worked divided by standard full-time hours.
What's the FTE for someone working 25 hours/week against a 40-hour full-time standard?
0.625.
Why do organizations use FTE?
To express a mix of full-time and part-time staff as a single comparable headcount figure for budgeting and workforce planning.