Free SaaS Tool
SaaS Quick Ratio Calculator
TL;DR
The SaaS quick ratio measures growth efficiency: how much MRR you add for every dollar you lose. Quick ratio = (new MRR + expansion MRR) ÷ (churned MRR + contraction MRR). A ratio of 4 or higher is excellent — you are growing efficiently. Below 1 means losses outweigh gains and the business is shrinking.
SaaS quick ratio
4.00
Excellent — growth efficiently outpaces losses (≥ 4).
How to calculate the SaaS quick ratio
SaaS quick ratio = (new MRR + expansion MRR) ÷ (churned MRR + contraction MRR). New MRR comes from new customers; expansion from upgrades; churn from cancellations; contraction from downgrades.
Benchmarks
A quick ratio of 4 or higher is excellent for SaaS. Between 1 and 4 you are growing but losing meaningful efficiency to churn and contraction. Below 1, losses exceed gains and revenue is shrinking regardless of how much new business you close.
What it reveals
The quick ratio exposes the “leaky bucket” problem: two companies can add the same new MRR, but the one losing less to churn grows far more efficiently. RetentionLens calculates this from your Stripe data and shows exactly which movement — new, expansion, contraction or churn — is moving the ratio.
Frequently asked questions
What is a good SaaS quick ratio?
A quick ratio of 4 or higher is considered excellent — popularized by Social Capital — meaning you add at least $4 of MRR for every $1 lost. Between 1 and 4 you are still growing but losing efficiency to churn; below 1 the business is contracting.
How is the SaaS quick ratio calculated?
SaaS quick ratio = (new MRR + expansion MRR) ÷ (churned MRR + contraction MRR). It compares all the recurring revenue you gained in a period against all the recurring revenue you lost.
How is the SaaS quick ratio different from NRR?
NRR measures retention of an existing customer cohort and excludes brand-new customers. The quick ratio includes new MRR, so it captures total growth efficiency — how well gains from all sources outpace all losses.
Why does a high quick ratio matter?
A high quick ratio means growth is durable rather than a treadmill where new sales just replace churned revenue. It signals that go-to-market spend translates into net growth efficiently.
Stop calculating by hand
Connect Stripe and RetentionLens tracks this metric automatically — with cohorts, trends and churn-risk scoring. Start on the free tier.
Benchmarks are general SaaS ranges and vary by segment, stage and business model. Last reviewed 2026-05-30.