Full-Time Equivalent (FTE)

/ ˈful ˈtaim i.ˈkwi.və.lənt / Full-Time Equivalent (Fte)


A full-time equivalent (FTE) is a unit that indicates how many employees a project requires. A full-time employee is equivalent to an FTE of 1.0, while an individual with half the workload makes up an FTE of 0.5.Accountants utilize FTE to help them estimate labor costs, while project managers use it to figure out their team's workload. To calculate the monthly FTE for a project, divide the monthly hours needed for the project by an employee's full-time work hours in a month. FTE = monthly hours for the project / employee's full-time monthly work hours For example, at KDCI, each employee may have 160 full-time work hours for a month. If an account needs 120 hours in the same month, it would have an FTE of 0.75.

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