SaaS Quick Ratio Calculator
Divide new plus expansion MRR by churned plus contraction MRR to get the SaaS growth quick ratio — how many dollars you add for each dollar you lose.
How it works
SaaS quick ratio = (new MRR + expansion MRR) ÷ (churned MRR + contraction MRR)
The SaaS quick ratio compares all the MRR you gained — from new customers and from upsells — against everything you lost to cancellations and downgrades. A ratio of 4 means you add four dollars for every dollar that leaks out, the widely cited mark of efficient, durable growth. Two companies can post the same net new MRR with very different quick ratios; a low ratio hides heavy churn behind strong sales, which is far more fragile than it looks.
Worked example
$40,000 new plus $15,000 expansion is $55,000 gained; $12,000 churn plus $5,000 contraction is $17,000 lost. The quick ratio is 55,000 ÷ 17,000 ≈ 3.24, with $38,000 of net new MRR.
Frequently asked questions
What is a good SaaS quick ratio?
A ratio of 4 or higher is the benchmark for efficient growth — you add four dollars of MRR for each one you lose. Between 1 and 4 you are still growing but leaking value; below 1 the base is shrinking.
Why not just look at net new MRR?
Net new MRR can look identical for a tight ship and a leaky one. The quick ratio exposes the churn hiding underneath: high gross additions offset by high losses is far riskier than the same net figure with little churn.
What counts as expansion versus new MRR?
New MRR comes from brand-new customers; expansion MRR is additional revenue from existing customers upgrading or adding seats. Both are inflows, so both go in the numerator.
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Educational estimate, not financial advice.