Free SaaS Quick Ratio Calculator
Calculate the SaaS Quick Ratio to measure the efficiency of revenue growth by comparing MRR gains to MRR losses.
SaaS Quick Ratio
2.92
SaaS Quick Ratio vs New MRR (new customers)
How to Calculate the SaaS Quick Ratio
Formula
SaaS Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)
Not to be confused with the accounting quick ratio, the SaaS Quick Ratio (coined by Mamoon Hamid) measures the quality of your revenue growth. A ratio of 4.0 means you add $4 for every $1 lost. Higher ratios indicate sustainable, high-quality growth because you are not just adding revenue to replace what leaks out.
Example Calculation
A company adds $25,000 in new MRR and $10,000 in expansion, while losing $8,000 to churn and $4,000 to contraction.
- 01MRR Gains = $25,000 + $10,000 = $35,000
- 02MRR Losses = $8,000 + $4,000 = $12,000
- 03SaaS Quick Ratio = $35,000 / $12,000 = 2.92
- 04Net MRR Change = $35,000 - $12,000 = +$23,000
Frequently Asked Questions
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