SaaS Quick Ratio Calculator
Measure your growth efficiency. Calculate the ratio of revenue gained to revenue lost and benchmark your SaaS against industry standards.
Growth MRR
Loss MRR
How Quick Ratio Is Calculated
Enter MRR Components
Input your new MRR, expansion MRR, churned MRR, and contraction MRR for the period.
Calculate the Ratio
Quick Ratio divides total growth MRR by total loss MRR to measure efficiency.
Benchmark Your Growth
See where you stand: below 1 is shrinking, 2-4 is healthy, above 4 is excellent.
Quick Ratio Formula
SaaS Quick Ratio:
Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)Net MRR Change:
Net MRR = (New + Expansion) - (Churned + Contraction)Understanding the SaaS Quick Ratio
The SaaS quick ratio was popularized by Mamoon Hamid of Social Capital as a way to measure growth efficiency at a glance. It answers a simple but powerful question: for every dollar of MRR you lose, how many dollars are you adding? A quick ratio of 4 means you add $4 for every $1 lost — a sign of highly efficient growth with minimal leakage.
Unlike headline MRR growth, the quick ratio exposes the quality of that growth. Two companies can both grow 10% month over month, but the one with a quick ratio of 4 is far healthier than one with a ratio of 1.5 — the latter is growing on a treadmill, constantly replacing lost revenue. For a deeper look at how quick ratio fits into the full SaaS metrics picture, see our SaaS quick ratio guide.
Quick ratio is often compared with net revenue retention (NRR), but they measure different things. NRR focuses exclusively on existing customers, while quick ratio includes new customer acquisition. A company with strong NRR (above 110%) but a low quick ratio might have great retention but weak new customer acquisition. Our MRR vs ARR explainer covers how these metrics relate to each other in practice.
The four components of quick ratio — new MRR, expansion MRR, churned MRR, and contraction MRR — each represent a different growth lever. Use the SaaS metrics calculator to calculate all four alongside your other subscription metrics, or the NRR calculator to isolate the retention side of the equation.
As a rule of thumb: if your quick ratio is below 2, prioritize churn reduction over new acquisition. The math is straightforward — reducing churn by $1 has the same effect on net MRR as adding $1 in new revenue, but retention improvements compound more reliably than acquisition spikes. Aim for a quick ratio above 4 in early stage, and above 2 as you scale past $5M ARR when growth rates naturally decelerate.
Frequently Asked Questions
What is SaaS quick ratio?
SaaS quick ratio measures your growth efficiency by dividing the MRR you gain (new + expansion) by the MRR you lose (churn + contraction). A ratio of 4 means you add $4 for every $1 lost. It was created by Mamoon Hamid at Social Capital as a single number that captures the health of your MRR movement. Unlike raw growth rate, quick ratio reveals whether your growth is sustainable or leaky.
Quick ratio vs NRR — what's the difference?
Quick ratio includes new customer MRR in the numerator, while Net Revenue Retention (NRR) only measures revenue changes from existing customers. NRR = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR. Quick ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR). A company can have excellent NRR (120%+) but a mediocre quick ratio if new customer acquisition is weak relative to total losses. Both metrics are important — NRR shows retention quality, quick ratio shows overall growth efficiency.
What is a good SaaS quick ratio?
Above 4 is excellent and indicates hyper-efficient growth with minimal revenue leakage. Between 2 and 4 is healthy — you are growing efficiently with manageable churn. Between 1 and 2 is a warning sign — growth is leaky, and you should focus on improving retention before scaling acquisition. Below 1 means your MRR is shrinking — you are losing more revenue than you are adding, which is unsustainable. Early-stage companies should target above 4, while scaled companies ($10M+ ARR) can sustain above 2 as growth naturally decelerates.
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