How Do I Calculate FTE?
Easy FTE CalculatorSee how many full-time equivalent employees are on your team, and easily calculate work hours and employee costs!
What Is a Full-Time Equivalent?
Let's Talk Yearly FTEsA full-time equivalent represents the number of hours a full-time employee works in a given year. If your salaried team members work 40 hours a week for 52 weeks, you would use 2080 hours to represent an annual FTE.
How Do I Calculate Employee Costs?
Salary, Overhead, and BonusesUnderstanding how much your employees actually cost — for both full-time and part-time team members — provides important insights into your business. Are you billing enough clients enough? Are you charging them too much? Which employees and what roles help your business increase profitability?
How do you calculate employee costs?
- Multiply the employee’s hourly wage by the number of hours worked that year
- Add another 25% to the total to cover payroll taxes, benefits, and overhead expenses
- Add the cost of any bonuses
How Does Time Tracking Help?
Time trackers automatically calculate employee costs for your entire organization. They also help you track, plan, and manage employee vacation time, holiday hours, and expenses.
How do I calculate full time equivalent?
FTE CalculatorFull-Time Equivalent FAQ
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How Many Hours Are in an Annual FTE?
If an employee were to take no vacation time, and he or she works 40 hours a week, it would add up to 2080 hours. Granted, U.S.-based employees often take two weeks of vacation, and their European counterparts may take upwards of four to six weeks. If you are using FTE calculations to determine future hiring needs, it makes sense to adjust the number of hours to fit your business.
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Why Do Full-Time Equivalents Matter?
Full-time equivalents help managers, business owners, and HR team members better understand existing costs to the business, as well as more effectively plan for future hiring needs. If, for example, your organization has 300 full-time employees and 1,000 part time contractors who work a varying number of hours, FTE calculations can simplify the total number of employees or hours worked.
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How Do I Calculate Revenue Per Employee?
This is another instance where full-time equivalents are helpful. The formula for revenue per employee is simply net revenue divided by the number of FTEs. For example, if you had one million dollars in revenue, 10 full-time employees, and 20 part-time employees who worked half days (and therefore represented 10 FTE), the formula would be:
1,000,000 / (10 + (20/2)) or 1,000,000 / 20