How Do You Calculate FTE? Credit: Guido Mieth/Moment/Getty Images

FTE can be calculated by dividing the total labor hours for exactly one year by the number 2,080, which represents how many hours one full-time employee works in a year. The acronym FTE stands for full-time equivalent and is the equivalent of one employee working full-time at a company.

FTE is considered to be eight hours in a day, multiplied by five days a week. This number is then multiplied by 52 weeks a year, and the calculation is 2,080 hours that an employee works in a year. If the total labor hours for a company within a year was 18,245, that would be divided by 2,080. In this case, FTE would be 8.77 FTEs.

FTE can also be calculated by using the labor hours in one month, divided by 173.33. The figure of 173.33 is representative of 2,080 divided by 12. Labor hours can also be calculated on a daily basis for FTE calculations. This number would be divided by 8. For example, if a company's daily staffing included 10 full-time workers at 8 hours a day and two part-time workers at 3 hours per day, it would be calculated by (10 x 8) + (2 x 3) = 86. The number 86 divided by 8 would be 10.75 FTEs.

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