{
  "id": "fte",
  "version": "e9a5b9a699b9",
  "status": "published",
  "name": "FTE Calculator",
  "question": "How many FTE employees do I have?",
  "summary": "Converts hours worked into full-time equivalent (FTE) employees, by full-time hours or by the IRS Affordable Care Act monthly method.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/fte-calculator",
  "markdown": "https://www.acalculator.org/finance/fte-calculator.md",
  "kind": "function",
  "method": "Hours method: FTE = total hours ÷ hours of one full-time employee in the same period. IRS ACA method (one month): FTE = hours of non-full-time employees (at most 120 each) ÷ 120; full-time and equivalent employees = full-time employees + FTE, rounded down.",
  "assumptions": [
    "Hours method: the total hours and the full-time hours cover the same period (a week, a month or a year).",
    "ACA method: you count at most 120 hours for each employee who is not full-time before you add them up.",
    "The ACA count here is for one month; the IRS averages 12 monthly counts to decide whether an employer has 50 or more."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "method": {
        "title": "Method",
        "description": "Total hours ÷ full-time hours, or the IRS Affordable Care Act monthly count.",
        "type": "string",
        "enum": [
          "hours",
          "aca"
        ]
      },
      "hrs": {
        "title": "Total hours worked",
        "description": "The hours all employees worked in the period, added up.",
        "type": "number",
        "minimum": 0,
        "maximum": 1000000000
      },
      "fth": {
        "title": "Hours of one full-time employee",
        "description": "The hours one full-time employee works in the same period: 40 a week, or 2,080 a year.",
        "type": "number",
        "minimum": 1,
        "maximum": 1000000
      },
      "ft": {
        "title": "Full-time employees",
        "description": "Employees who averaged at least 30 hours of service a week (130 hours) in the month.",
        "type": "integer",
        "minimum": 0,
        "maximum": 10000000
      },
      "pth": {
        "title": "Hours of all other employees",
        "description": "The month’s hours of service of every employee who is not full-time, counting at most 120 each.",
        "type": "number",
        "minimum": 0,
        "maximum": 1000000000
      }
    }
  },
  "outputs": {
    "fte": {
      "label": "Full-time equivalents",
      "description": "Hours ÷ full-time hours (or, for the ACA, the other employees’ hours ÷ 120).",
      "format": "number"
    },
    "total": {
      "label": "Full-time and equivalent employees",
      "description": "Full-time employees + full-time equivalents (ACA method).",
      "format": "number"
    },
    "totalWhole": {
      "label": "ACA count (rounded down)",
      "description": "The full-time and equivalent employees rounded down to a whole number, as the IRS counts.",
      "format": "integer"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "method": "hours",
      "hrs": 1000,
      "fth": 40,
      "ft": 40,
      "pth": 900
    },
    "outputs": {
      "fte": 25
    },
    "text": "Full-time equivalents: 25."
  },
  "examples": [
    {
      "given": {
        "method": "aca",
        "ft": 40,
        "pth": 900
      },
      "expect": {
        "fte": 7.5,
        "total": 47.5,
        "totalWhole": 47
      },
      "source": "IRS, Determining if an employer is an applicable large employer (FTE employees: combine the hours of service of all non-full-time employees for the month, at most 120 per employee, and divide by 120). https://www.irs.gov/affordable-care-act/employers/determining-if-an-employer-is-an-applicable-large-employer (Example 1: 15 part-time employees × 60 hours = 900 ÷ 120 = 7.5; with 40 full-time, 47.5, rounded down to 47)"
    },
    {
      "given": {
        "method": "aca",
        "ft": 40,
        "pth": 1200
      },
      "expect": {
        "fte": 10,
        "total": 50,
        "totalWhole": 50
      },
      "source": "IRS, Determining if an employer is an applicable large employer (FTE employees: combine the hours of service of all non-full-time employees for the month, at most 120 per employee, and divide by 120). https://www.irs.gov/affordable-care-act/employers/determining-if-an-employer-is-an-applicable-large-employer (Example 2: 20 part-time employees × 60 hours = 1,200 ÷ 120 = 10; with 40 full-time, 50)"
    },
    {
      "given": {
        "method": "hours",
        "hrs": 100,
        "fth": 40
      },
      "expect": {
        "fte": 2.5
      },
      "source": "Hand calculation in content.mdx: one 40-hour employee and three 20-hour employees: 100 ÷ 40 = 2.5"
    },
    {
      "given": {
        "method": "hours",
        "hrs": 3120,
        "fth": 2080
      },
      "expect": {
        "fte": 1.5
      },
      "source": "Hand calculation in content.mdx: a year at 2,080 full-time hours (40 × 52); 3,120 ÷ 2,080 = 1.5"
    }
  ],
  "sources": [
    "IRS, Determining if an employer is an applicable large employer (FTE employees: hours of service of non-full-time employees, at most 120 each, ÷ 120; full-time means 30 hours a week or 130 hours a month; Examples 1 and 2). https://www.irs.gov/affordable-care-act/employers/determining-if-an-employer-is-an-applicable-large-employer (retrieved 2026-10-05)",
    "U.S. Office of Personnel Management, Pay and leave: computing hourly rates of pay using the 2,087-hour divisor (hourly rate = annual pay ÷ 2,087 hours, a full-time federal work year). https://www.opm.gov/policy-data-oversight/pay-leave/pay-administration/fact-sheets/computing-hourly-rates-of-pay-using-the-2087-hour-divisor/ (retrieved 2026-10-05)"
  ],
  "related": [
    "hourly-to-salary",
    "salary-to-hourly",
    "payroll-tax",
    "overtime"
  ],
  "changelog": []
}