FTE Calculator

Q: How many hours is 0.8 FTE?

On a 40-hour standard week, 0.8 FTE is 32 hours a week . Over a year that is about 1,664 hours (2,080 × 0.8). The hours change if your company uses a different baseline. With a 37.5-hour week, 0.8 FTE is 30 hours a week.

Q: What does 0.5 FTE mean on a job posting?

It means the job is half of a full-time schedule . With a 40-hour full-time week, that is 20 hours a week, or about 1,040 hours a year. Pay is usually half of the full-time salary for that role. Benefits may or may not be included, so ask the employer.

Q: How do you calculate FTE for one month?

Add up all hours worked in the month, then divide by 173.33 (2,080 ÷ 12). Example: your team works 2,600 hours in June. 2,600 ÷ 173.33 = 15.0 FTE . ACA math uses 120 hours per month instead, and caps each part-time person at 120 hours.

FTE Calculator

Updated Sep 10, 2026 By Jehan Wadia

ACA Metric	Value
Monthly Hours — All Non-Full-Time Groups Each non-full-time employee's monthly hours are automatically capped at 120 per IRS ACA rules before summing.	—
ACA FTE from Non-Full-Time EmployeesMonthly non-FT hrs ÷ 120	—
Full-Time Employee Headcount	—
ACA Total Equivalent FTE	—

ACA Metric

Value

Monthly Hours — All Non-Full-Time Groups Each non-full-time employee's monthly hours are automatically capped at 120 per IRS ACA rules before summing.

—

ACA FTE from Non-Full-Time EmployeesMonthly non-FT hrs ÷ 120

—

Full-Time Employee Headcount

—

ACA Total Equivalent FTE

—

Introduction

This FTE calculator turns your team's work hours into full-time equivalent (FTE) numbers. FTE tells you how many full-time workers your staff hours add up to. One full-time worker who works 2,080 hours a year equals 1.0 FTE. Two part-time workers at 20 hours a week also equal 1.0 FTE.

Type in how many full-time and part-time workers you have, the hours they work, and the weeks they work each year. You can add up to three more groups, like contractors or seasonal staff. The tool then shows total hours, total headcount, and your total FTE.

It also runs an ACA check. The Affordable Care Act uses its own math to see if a business is an Applicable Large Employer (ALE). If you hit 50 full-time equivalent employees, you may need to offer health coverage. The calculator counts part-time hours at 120 hours per month, adds your full-time workers, and shows how close you are to that 50-employee line.

Use it to plan budgets, set staffing levels, apply for grants or loans, and check health coverage rules. Every result comes with a step-by-step solution, a chart, and a quick reference table, so you can see how the numbers work.

How to use our FTE Calculator

Enter how many people you employ, how many hours they work, and how many weeks per year they work. The FTE calculator shows your total full-time equivalent (FTE) count, total hours, headcount, and your ACA status under the 50-employee ALE threshold.

Number of Full-Time Employees: Type how many full-time staff you have. Use whole numbers only.

Full-Time Hours Worked: Enter the hours a full-time worker puts in, then pick Per Day, Per Week, Per Month, or Per Year from the drop-down next to it. The tool changes your entry into weekly hours for you.

Full-Time Weeks Worked Per Year: Enter how many weeks per year your full-time staff work. Most use 52. Use a lower number if they take unpaid weeks off.

Number of Part-Time Employees: Type how many part-time staff you have.

Part-Time Hours Worked: Enter the hours a part-time worker puts in and pick the time period from the drop-down. If this comes to 30 hours a week or more, a warning shows because those workers may count as full-time under the ACA.

Part-Time Weeks Worked Per Year: Enter how many weeks per year your part-time staff work. Seasonal teams often work fewer than 52.

Add Custom Group: Click this to add up to three more groups, like contractors or seasonal help. Name the group, then fill in the same count, hours, and weeks fields.

Standard Full-Time Hours Per Year: This is the baseline used to divide your total hours. It starts at 2,080 hours (40 hours a week × 52 weeks). Change it if your company uses a different full-time schedule, like 1,950 hours.

Show Result Hours As: Pick Per Year, Per Month, Per Week, or Per Day to set the unit for every hours result on the page.

Click Calculate to see your FTE results, step-by-step math, ACA compliance analysis, and a chart. Click Reset to Defaults to start over.

What Is FTE (Full-Time Equivalent)?

FTE stands for full-time equivalent. It turns all the hours your staff works into a single number. One FTE equals one person working a full-time schedule. Most companies count 40 hours a week, or 2,080 hours a year, as one FTE.

Headcount just counts people. FTE counts work. Two part-time workers who each work 20 hours a week add up to 1.0 FTE, not 2.0. That is why FTE gives a truer picture of your team's size.

How FTE Is Calculated

The main formula is:

Total FTE = Total hours worked per year ÷ Standard full-time hours per year

To get there, you take each group of workers and multiply:

Number of employees
× Hours each works per week
× Weeks worked per year

Add up every group, then divide by your yearly baseline (usually 2,080 hours). If your company uses a 37.5-hour week, your baseline is 1,950 hours instead.

Why FTE Matters for Business

FTE is used all over finance and HR:

Budgets and payroll: Plan labor costs based on real work hours.
Hiring: See how many full-time roles you actually need.
Grants and loans: Many programs ask for FTE, not headcount.
Productivity: Compare revenue or output per FTE across teams or years.

FTE and the Affordable Care Act (ACA)

The ACA uses its own FTE math, and it is different from the general formula. Under IRS rules:

Anyone who averages 30 or more hours a week counts as one full-time employee.
For everyone else, add up their monthly hours (capped at 120 hours per person) and divide the total by 120.
Add the two numbers together to get your ACA total.

If that total hits 50 or more, your business is an Applicable Large Employer (ALE). ALEs must offer health coverage to full-time staff or may owe penalties under IRC §4980H. Businesses under 50 are not subject to that rule.

Quick FTE Reference (40-Hour Baseline)

Hours Per Week	FTE Value
40	1.00
30	0.75
20	0.50
10	0.25

Things to Watch For

Use real hours worked, not scheduled hours, when you can. Seasonal and temporary staff often work fewer weeks per year, so their FTE is lower. General FTE and ACA FTE can give different answers for the same team, and that is normal. For legal or tax choices, check with a benefits advisor or accountant.

Formulas used

Normalize hours to weekly equivalent

H_{week} = \begin{cases} h \times 5 & \text{per day} \\ h & \text{per week} \\ h \div \frac{52}{12} & \text{per month} \\ h \div 52 & \text{per year} \end{cases}

Group annual hours

A_g = N_g \times H_{week,g} \times W_g

Total combined annual hours and weekly total

A_{total} = \sum_g A_g, \qquad H_{week,total} = \frac{A_{total}}{52}

Total FTE

\text{FTE} = \frac{A_{total}}{\text{Standard annual full-time hours}}

ACA monthly hours for non-full-time groups (capped at 120 per employee)

M_{nonFT} = \sum_g N_g \times \min\left(H_{week,g} \times \frac{W_g}{12},\; 120\right)

ACA total equivalent FTE (ALE test)

\text{FTE}_{ACA} = \frac{M_{nonFT}}{120} + N_{FT},\quad N_{FT}\ \text{counted only if}\ H_{week,FT} \ge 30

Reference FTE value for a given weekly hours level

\text{FTE}_{ref} = \frac{h_{week}}{\text{Standard annual hours} \div 52}

ALE threshold progress

\text{Progress} = \min\left(\frac{\text{FTE}_{ACA}}{50} \times 100,\; 100\right)\%

Frequently asked questions

How many hours is 0.8 FTE?

On a 40-hour standard week, 0.8 FTE is 32 hours a week. Over a year that is about 1,664 hours (2,080 × 0.8).

The hours change if your company uses a different baseline. With a 37.5-hour week, 0.8 FTE is 30 hours a week.

What does 0.5 FTE mean on a job posting?

It means the job is half of a full-time schedule. With a 40-hour full-time week, that is 20 hours a week, or about 1,040 hours a year.

Pay is usually half of the full-time salary for that role. Benefits may or may not be included, so ask the employer.

Can one employee be more than 1.0 FTE?

Yes, in general FTE math. A worker who puts in 50 hours a week on a 40-hour baseline counts as 1.25 FTE.

But for ACA rules it works differently. Each person counts as no more than one full-time employee, and part-time hours are capped at 120 per month. Overtime cannot push your ACA count higher for one person.

Does paid time off count toward FTE hours?

Yes. The IRS counts paid vacation, holidays, sick days, jury duty, and other paid leave as hours of service for ACA math.

Unpaid leave usually does not count. For your own budget FTE, pick one rule and use it for every group so your numbers stay fair.

Do independent contractors count as FTE employees?

Usually no. True 1099 contractors are not employees, so their hours do not count toward your ACA employee total.

The line matters, though. If you control when and how a worker does the job, the IRS may treat that person as an employee. Misclassifying workers can bring back taxes and penalties. Many companies still track contractor hours as a separate FTE group for budgeting.

Do business owners count toward FTE?

It depends on how the business is set up. Sole proprietors, partners in a partnership, and most 2% S-corp shareholders are not counted as employees for ACA purposes.

Owners who work as regular W-2 employees of a corporation usually do count. Family members on payroll can also count.

Do seasonal workers count toward the ACA 50-employee threshold?

They count in the monthly math, but there is an exception. If you go over 50 FTE for 120 days or fewer in a year (or 4 calendar months, which do not have to be back to back), and the extra people are seasonal workers, you are not an Applicable Large Employer.

Seasonal work means jobs that only happen at certain times of the year, like harvest or holiday retail.

How do you calculate FTE salary for a part-time worker?

Multiply the full-time salary for the role by the FTE value.

Example: a full-time job pays $60,000. A worker at 0.6 FTE (24 hours a week) earns $60,000 × 0.6 = $36,000.

To go the other way, divide the part-time pay by the FTE. $36,000 ÷ 0.6 = a $60,000 full-time equivalent salary.

How do you calculate FTE for one month?

Add up all hours worked in the month, then divide by 173.33 (2,080 ÷ 12).

Example: your team works 2,600 hours in June. 2,600 ÷ 173.33 = 15.0 FTE.

ACA math uses 120 hours per month instead, and caps each part-time person at 120 hours.

Is 32 hours a week considered full-time?

There is no single rule. Federal wage law does not define full-time at all, so each employer sets its own line.

For health coverage, the ACA counts 30 or more hours a week (or 130 hours a month) as full-time. So a 32-hour worker is full-time for ACA even if your company calls the job part-time.

How do you count hours for salaried workers who do not track time?

The IRS lets you use an equivalency method. You can credit each salaried worker 8 hours for any day worked, or 40 hours for any week worked.

You cannot pick the method that lowers your count on purpose. If the shortcut leaves out a big share of real hours, you must use actual hours instead.

What is a good revenue per FTE?

It varies a lot by industry. Many service and retail firms land between $100,000 and $250,000 per FTE. Software and finance often run much higher, sometimes over $500,000.

The number itself matters less than the trend. Compare your revenue per FTE to last year and to firms your size in your industry.

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