Assuming that all students pay a single fee per course, the FTE for students is figured by adding the number of all students, full and part-time, and dividing that number by the number of classes a full-time student takes. This number allows a college or university to calculate a clear view of how many students it is serving from a strict budgetary perspective. In terms of money coming in or going out, the calculation is unaffected by whether students are full-time or part-time.
The FTE for faculty is figured by adding up all the faculty members, including part-time, and dividing by the number of classes a full-time professor is expected to teach. This number shows how many professors the university would employ if they were all full-time. From a budgetary standpoint, this calculation helps the university easily determine the average and the mean salary.
Sometimes the simplistic FTA formulas fail to account for real-world applications. Complications occur when full-time employees receive benefits that part-time employees do not. The standard equation can't accommodate such factors. More complicated formulas for FTE can be used to address these sorts of issues.