SaaS

SaaS Quick Ratio Calculator

Measure how much new and expansion recurring revenue offsets churn and contraction.

Last reviewed: April 30, 2026Free toolMethodology

SaaS Quick Ratio Calculator

These fields start with sample inputs. Keep them or replace them, then run the tool to show a fresh result.

Number fields accept plain values and common formatted input such as 250000, 250,000, or 1,234.56.

Result

Calculating the sample result.

Why it matters

The SaaS quick ratio is a compact growth-quality signal because it balances revenue creation against revenue loss in one number.

When to use

  • Monitoring recurring revenue efficiency
  • Comparing growth quality across periods
  • Adding context to topline MRR growth

Inputs & Outputs

Inputs

  • New MRR and expansion MRR are the positive recurring revenue adds.
  • Churned MRR and contraction MRR are the negative recurring revenue movements.

Outputs

  • Quick ratio shows positive MRR adds divided by negative MRR losses.
  • Net new MRR shows the absolute recurring revenue change after losses.

Quick ratio formula

Add new MRR and expansion MRR, add churned and contraction MRR, then divide gains by losses.

Quick ratio = (new MRR + expansion MRR) / (churned MRR + contraction MRR)

Worked example

1

Growth quality check

A company adds 110,000 in new MRR and 40,000 in expansion while losing 30,000 to churn and 20,000 to contraction.

Inputs

  • New MRR: 110,000
  • Expansion MRR: 40,000
  • Churned MRR: 30,000
  • Contraction MRR: 20,000

Steps

  • Positive MRR = 150,000
  • Negative MRR = 50,000
  • Quick ratio = 150,000 / 50,000 = 3.0

Result

  • The SaaS quick ratio is 3.0x.

Edge cases & caveats

  • If losses are very small, the ratio can become volatile.
  • Use it alongside absolute net new MRR so scale is not lost.

Frequently Asked Questions

Why is this called a quick ratio?

Because it gives a fast read on whether recurring revenue gains are meaningfully outpacing losses.

Can the ratio be below 1?

Yes. That means revenue losses are outpacing new and expansion revenue.

Keep going

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