Full-time equivalent (FTE)
also known as FTE
A way of expressing mixed full-time, part-time and freelance hours as a number of full-time people, used for capacity and cost planning.
For example, two people at half time and one freelancer doing roughly two days a week add up to about 1.8 FTE. Expressing the team this way makes capacity and cost comparable, regardless of how the hours are actually staffed.
Why it matters to agencies: FTE turns a messy mix of full-time, part-time and freelance hours into one comparable number, which is essential for capacity planning and pricing. It lets an agency reason about how much delivery power it really has and what that power costs.
FTE = total worked hours ÷ full-time hours for the period
E.g. someone working 20 of a 40-hour week is 0.5 FTE.
FTE calculator
Plug in your numbers - it updates as you type.
Prefer its own page? Open the fte calculator
- Confusing headcount with FTE.
- Ignoring part-timers and contractors in capacity.
- Planning on FTE without allowing for non-billable time.
What is a full-time equivalent (FTE)?
A way of expressing mixed full-time, part-time and freelance hours as a number of full-time people, used for capacity and cost planning.
How do you calculate FTE?
Divide the total hours worked by the hours a full-time person would work in the same period.
Why do agencies use FTE?
To compare and plan capacity and cost across a mix of full-time, part-time and freelance staff using one consistent unit.
What is the difference between FTE and headcount?
Headcount counts people regardless of hours; FTE converts their hours into full-time equivalents, so two half-timers are one FTE but two heads.