---
title: "FTE (Full-Time Equivalent)"
description: "FTE stands for full-time equivalent. Learn what it means, the formula, and a worked example for converting part-time hours into headcount."
url: "https://sageo.ai/glossary/fte"
source: "Sageo (sageo.ai)"
---


# FTE (Full-Time Equivalent)

FTE (full-time equivalent) is a unit that converts the hours worked by all employees into the number of full-time employees those hours represent. One FTE equals one person working a full schedule, usually 40 hours a week. A part-timer on 20 hours counts as 0.5 FTE. It lets you compare workload and cost across mixed teams.

**Also known as:** full-time equivalent, how to calculate FTE, FTE calculation, 1.0 FTE

## Key takeaways

- FTE (full-time equivalent) converts all working hours into the number of full-time people they add up to.
- Formula: total hours worked ÷ hours in one full-time week (usually 40).
- Headcount counts people; FTE counts capacity.
- Use FTE for budgeting, workload, and capacity planning; use headcount for licences and ratios.

## At a glance

- **Formula:** Total hours worked ÷ full-time week (often 40)
- **1.0 FTE:** One full-time employee (e.g. 40 hrs/week)
- **0.5 FTE:** A 20-hour-a-week part-timer
- **Related:** Headcount, span of control

## Why does FTE matter?

Headcount tells you how many people you employ. FTE tells you how much work capacity you have. Budgets, staffing plans, and benefits eligibility rules all run on FTE, not headcount. If half your support team is part-time, headcount will overstate your capacity every single time.

## How do you calculate FTE?

FTE = total hours worked by all employees ÷ hours in one full-time schedule

Use the same period on both sides. Weekly hours over 40, or annual hours over 2,080 (40 × 52).

## Worked example

A team has 4 full-timers at 40 hours, 2 part-timers at 20 hours, and 1 contractor at 10 hours.

Total hours = 160 + 40 + 10 = 210. FTE = 210 ÷ 40 = **5.25 FTE**. Headcount is 7.

## Frequently asked questions

### Is FTE the same as headcount?

No. Headcount counts people. FTE counts full-time workloads. Seven people can be 5.25 FTE.

### What does 0.8 FTE mean?

The role is 80% of a full-time schedule, so 32 hours on a 40-hour week.

### What does 1.0 FTE mean?

1.0 FTE is one full-time employee's worth of hours, typically 40 a week (or 37.5 in some regions). A 20-hour part-timer is 0.5 FTE, so two of them equal 1.0 FTE of capacity.

### How do you calculate FTE for part-time staff?

Divide each person's weekly hours by a full-time week. Someone on 24 hours against a 40-hour week is 24 ÷ 40 = 0.6 FTE. Sum everyone's figures for total FTE.

### Why do companies track FTE?

FTE makes workload, budgets, and productivity comparable across teams with different mixes of full- and part-time staff, and it is the standard denominator for cost-per-FTE and revenue-per-FTE metrics.

### Does FTE include contractors?

It depends on your definition. Many companies calculate FTE for employees only and track contractor capacity separately. Whatever you choose, state the rule so the number is comparable over time.