SaaS Quick Ratio Calculator

Calculate SaaS Quick Ratio (new + expansion MRR) / (churn + contraction MRR). Benchmark against best-in-class (≥4), track quarterly trend, and forecast net MRR growth.

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SaaS Quick Ratio
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Net MRR Change —
Extended More scenarios, charts & detailed breakdown ▾
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SaaS Quick Ratio
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Total MRR Gained —
Total MRR Lost —
Professional Full parameters & maximum detail ▾
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Quick Ratio

SaaS Quick Ratio —
Status —

MRR Movements

Net MRR Change —
Projected MRR Next Month —
Net MRR Growth Rate —
Churn vs Contraction Split —

How to Use This Calculator

  1. Enter New MRR, Expansion MRR, Churned MRR, and Contraction MRR.
  2. SaaS Quick Ratio and status appear instantly.
  3. Use Status Bands to see how much gained MRR you need to reach 4×.
  4. Use Trend to compare 3 quarters.
  5. Switch to Professional for MRR forecast and churn type breakdown.

Formula

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

Example

New: $50K, Expansion: $20K, Churn: $10K, Contraction: $5K → QR = $70K / $15K = 4.67 — Best-in-class.

Frequently Asked Questions

  • The SaaS Quick Ratio measures revenue growth efficiency: (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR). A ratio of 4 means you add $4 for every $1 lost. Coined by Mamoon Hamid at Social Capital.
  • ≥4 is best-in-class. 2–4 is healthy growth. 1–2 is at-risk (growth is barely outpacing churn). Below 1 means you are burning — revenue is contracting.
  • The financial quick ratio (acid test) measures liquidity: (Cash + Receivables) / Current Liabilities. The SaaS Quick Ratio is completely different — it measures revenue growth efficiency and has nothing to do with the balance sheet.
  • MRR growth alone can be misleading — you might be growing by acquiring lots of customers while churning existing ones at a high rate. The Quick Ratio reveals if growth is sustainable (high new + expansion) or hiding problems (high churn offset by acquisition).
  • Two levers: (1) Increase the numerator — improve new customer acquisition and expansion revenue programs. (2) Decrease the denominator — reduce churn through better onboarding, success programs, and product stickiness.

Related Calculators

📈 NRR Calculator 📊 MRR Calculator 📉 Churn Rate Calculator 📊 GRR Calculator
Sources & References (5) ▾
  1. SaaS Quick Ratio — Mamoon Hamid / Social Capital — Mamoon Hamid
  2. SaaS Metrics Guide — ChartMogul — ChartMogul
  3. ProfitWell SaaS Quick Ratio — ProfitWell
  4. OpenView SaaS Metrics Framework — OpenView Partners
  5. SaaStr SaaS Metrics Deep Dives — SaaStr