SaaS Quick Ratio Calculator

Measure how efficiently you're growing

Enter your monthly MRR movements:

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Revenue from new customers
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Revenue from upsells/upgrades
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Revenue lost from cancellations
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Revenue lost from downgrades

What is SaaS Quick Ratio?

Quick Ratio measures growth efficiency by comparing revenue added (new + expansion) to revenue lost (churn + contraction). It shows how sustainable your growth is.

Formula:

Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)

Benchmarks:

  • 4+: Excellent - very efficient growth
  • 2-4: Good - healthy growth
  • 1-2: Warning - growth is inefficient
  • <1: Critical - losing more than gaining

A Quick Ratio of 4 means for every $1 lost, you're adding $4 in new/expansion revenue.

Related Calculators

Net Revenue Retention MRR Calculator Churn Rate LTV:CAC Ratio
View all tools →

Frequently Asked Questions

What's a good Quick Ratio? ▼
Mamoon Hamid of Social Capital popularized the "4" benchmark. A Quick Ratio of 4+ is considered excellent, meaning you add $4 for every $1 lost. Early-stage companies often have lower ratios (2-3) that improve with scale and better retention.
Quick Ratio vs NRR - what's the difference? ▼
Quick Ratio includes NEW customer revenue, while NRR only looks at existing customers. Quick Ratio shows overall growth efficiency; NRR shows product stickiness. Both are important - high NRR with low Quick Ratio means you're retaining well but not acquiring efficiently.
How can I improve my Quick Ratio? ▼
Two paths: (1) Increase the numerator - grow new customer acquisition and expansion revenue, (2) Decrease the denominator - reduce churn and contraction. Usually fixing churn gives faster results than scaling acquisition.
Can Quick Ratio be misleading? ▼
Yes, in early stages or small samples. If you have very low churn ($100), adding $400 in new MRR gives you a 4:1 ratio, but both numbers are small. Also, heavy spending on acquisition can artificially inflate the ratio. Consider it alongside CAC, LTV, and NRR.

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