What is full-time equivalent (FTE)?
Full-time equivalent (FTE), also referred to as whole-time equivalent (WTE), is a standard unit of measurement used by employers and HR professionals to quantify workload and staffing levels on a consistent scale.
An FTE of 1.0 represents a single worker on a standard full-time schedule, typically 37.5 or 40 hours per week. A part-time employee who works 20 hours per week in a 40-hour organisation represents an FTE of 0.50 (50%).
FTE calculations allow organisations to combine full-time, part-time, temporary, and seasonal workers into an accurate benchmark of total labour capacity, streamlining budgeting, headcount planning, and statutory reporting.
Worked example: 24 hours per week on a 40-hour standard
Suppose an employee is contracted to work 24 hours per week in a business where standard full-time hours are 40 hours per week, with a full-time salary of £45,000.00.
The employee's FTE ratio is calculated as 24 divided by 40, yielding 0.60 (or an FTE percentage of 60.0%).
This schedule represents a reduction of 16.0 hours per week compared to a standard full-time position.
Applying the 0.60 FTE ratio to the £45,000.00 benchmark salary yields a pro-rata annual salary of £27,000.00, equivalent to £2,250.00 per month and £519.23 per week before taxes.
How to calculate team and workforce FTE
To calculate total FTE across an entire department or company, add together the weekly hours worked by all employees (including full-time, part-time, and overtime hours) and divide the grand total by the organisation's standard full-time weekly hours.
For example, if four staff members work 40, 30, 20, and 10 hours per week (100 total hours) against a 40-hour full-time benchmark, your team represents an effective workforce of 2.50 FTE.
Inputs for the FTE calculator
Calculation mode
Choose whether you are calculating the FTE and pro-rata salary for an individual worker or the total aggregate FTE across an entire team.
Hours worked per week
The actual contracted weekly working hours for an individual employee.
Full-time standard hours
The number of weekly hours defined as standard full-time employment by your employer, typically 37.5 or 40 hours.
Full-time annual salary
The 100% full-time equivalent annual salary before tax, used to determine pro-rata earnings.
Total weekly hours across team
The combined weekly hours worked by all employees across your organisation or department.
CALCULATOR QUESTIONS
FTE calculator questions
What does 0.8 FTE mean in hours?
An FTE of 0.8 represents 80% of a full-time schedule. If the full-time standard is 40 hours per week, 0.8 FTE equals 32 hours per week (or 4 standard 8-hour days). For a 37.5-hour standard, 0.8 FTE equals 30 hours per week.
How does FTE differ from headcount?
Headcount simply counts the number of individual employees regardless of hours worked. FTE standardises part-time workers into full-time equivalents; for example, two staff working 20 hours each represent a headcount of 2 but an FTE of 1.0.
Is FTE used for holiday entitlement?
Yes. Statutory annual leave is proportional to FTE. In the UK, a 1.0 FTE employee receives 28 days of statutory holiday, whereas a 0.5 FTE employee receives 14 days.
Can an employee have an FTE greater than 1.0?
While standard single employment contracts are capped at 1.0 FTE, an individual holding multiple roles or working significant contractual overtime can effectively work more than 1.0 FTE (such as 1.25 FTE for 50 hours on a 40-hour standard).