Full-Time Equivalent

Full-time equivalent, or FTE, normalizes full-time, part-time, and sometimes contractor labor into equivalent full-time headcount.

Full-time equivalent, or FTE, converts full-time, part-time, and sometimes contractor labor into a normalized headcount measure. It is useful when productivity metrics need a consistent denominator.

FTE is commonly used in revenue per employee and ARR per employee. Compare SaaS productivity in SaaS revenue per employee benchmarks.