You can find the FTE for any amount of time. To get FTE for the year, divide the total annual hours worked by 2080, which assumes a 40-hour workweek for 52 weeks of the year. To calculate for the month, divide by 173. 33, which is equivalent to 2080 hours divided by 12 months. You can also use an online calculator if you don’t want to manually calculate FTEs. For the most accurate FTE calculation, hire a tax lawyer or accountant to calculate them for you.
Example: You have 3 part-time employees for the year. One works 15 hours a week for 30 weeks, and the other 2 work 20 hours for 40 weeks each. The first employee works: 15 hours x 30 weeks = 450 hours. The second and third employee work: 20 hours x 40 weeks x 2 employees = 1,600 hours. Add the hours together: 450 hours for 30 weeks + 1,600 hours for 40 weeks = 2,050 part-time hours for the year.
Example: You have 6 full-time employees working 40 hours a week. 40 hours x 6 employees = 240 weekly hours. Multiply the hours by 52 (weeks in a year) to determine full-time annual hours: 52 weeks x 240 hours = 12,480 annual full-time hours. If your business has a 32- or 35-hour workweek, then multiply the number of employees by that amount instead of 40.
Example: 12,480 full-time hours + 2,050 part-time hours = 14,530 total hours.
Example: 14,530 total hours ÷ 2,080 full-time hours = 6. 98 FTEs. Holiday hours and other paid leave are already accounted for as part of the hours worked so you don’t need to make any special calculations.
Example: If a full-time employee and part-time employee are getting the same amount of work done, then the full-time employee is only working with an efficiency of 0. 5 FTE. The full-time employee either needs additional tasks to fill their time or to be talked to about their performance.
Example: If a project requires 200 hours to complete, divide 200 by 40 hours in a workweek. 200 project hours ÷ 40 workweek hours = 5 FTEs. You’ll need 5 full-time employees working for a full workweek to complete your project.
