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SaaS Quick Ratio Calculator

Calculate the SaaS quick ratio: (new + expansion) / (contraction + churn).

SaaS quick ratio is a growth quality metric that compares positive MRR movements (new + expansion) to negative movements (contraction + churn).

Prefer an explanation- Read the guide.
Need definitions- Browse the glossary.
SaaS Quick Ratio: definition, formula, and how to use itMRR waterfall: reconcile starting MRR to ending MRRARPA: how to calculate Average Revenue Per Account (formula + examples)How to calculate ARPU (Average Revenue Per User)
 
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Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:
2.5:1
New MRR
$12,000
Expansion MRR
$8,000
Contraction MRR
$3,000
Churned MRR
$5,000
Target quick ratio (optional)
0

How to calculate

  1. Measure new and expansion MRR for the period.
  2. Measure contraction and churned MRR for the same period.
  3. Compute quick ratio = (new + expansion) / (contraction + churn).
  4. Optional: add a target quick ratio to back-solve additions or max losses.

Formula

Quick ratio = (New MRR + Expansion MRR) / (Contraction MRR + Churned MRR)
  • All movements are measured for the same period.
  • Use MRR movements (not billings/cash) to keep the metric consistent.

FAQ

What is a good SaaS quick ratio-
Benchmarks vary by stage, but higher ratios generally indicate healthier growth quality (more positive MRR compared to losses). Use trends and segment-level ratios to diagnose where losses are coming from.

Common mistakes

  • Using mismatched windows or definitions for movements.
  • Relying on blended numbers that hide segment problems.

How to interpret

Quick ratio tips
  • Track quick ratio by segment to find leaky cohorts.
  • If quick ratio drops, inspect churned MRR and contraction first.
  • Pair with payback and burn multiple to judge cash efficiency.

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Quick checks

  • Keep time units consistent (monthly vs annual) across inputs and outputs.
  • Segment by cohort/channel/plan before trusting a blended average.
  • Use the related guide to avoid common definition and denominator mismatches.