SaaS Quick Ratio Calculator

What is Quick Ratio?

The SaaS quick ratio compares new and expansion MRR to churned and contraction MRR. It summarizes whether growth from the base and new logos outweighs revenue leakage.

Formula

Version v1. See methodology and the public formula repo for sources and change history.

Worked example

Using the default example inputs (New MRR: $50,000; Expansion MRR: $15,000; Churned MRR: $10,000; Contraction MRR: $3,000), Quick Ratio equals 5:1 (SaaS quick ratio). Ratios above 4x suggest strong growth relative to churn and contraction.

What good looks like

Ratios above 4x are often cited as healthy in growth SaaS. Below 1x means you are shrinking on a net MRR basis regardless of headline ARR stories.

Directional guidance only, not a cohort benchmark claim. Premium cohort bands appear when sample thresholds are met for your profile.

FAQ

What is Quick Ratio?

The SaaS quick ratio compares new and expansion MRR to churned and contraction MRR. It summarizes whether growth from the base and new logos outweighs revenue leakage.

What is the Quick Ratio formula?

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

Quick ratio vs NRR?

NRR is cohort revenue retention as a percent; quick ratio is a flow ratio of MRR components in a period.

Include contraction separately?

Yes. Seat downgrades belong in the denominator with churn so expansion does not mask downgrade pressure.

Monthly or quarterly inputs?

Use the same period for all four MRR components so the ratio is internally consistent.