SaaS Quick Ratio Calculator

Enter the recurring revenue you added and lost in a period to see how many dollars you gain for every dollar that leaks out, and whether you clear a quick ratio of 4.

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Revenue gained

Revenue lost

New Expansion Churn Contraction

Editorial note: This tool is for informational and educational purposes only and is not investment advice. The quick ratio is a snapshot of one period and says nothing about margins, cash, or the durability of your growth. It is most useful tracked over time and read alongside retention and unit economics, not on its own.

What the SaaS quick ratio measures

The SaaS quick ratio is a growth-efficiency check. It stacks everything you added in a period, new customers plus expansion, against everything you lost, churn plus contraction, and reduces the two to a single ratio. A quick ratio of 4 means you brought in four dollars of recurring revenue for every dollar that slipped away. The higher the number, the more of your hard-won growth actually sticks.

It is a useful companion to net revenue retention. Retention looks only at existing customers, while the quick ratio folds new business into the gains, so it captures the whole growth engine in one figure. Investor Mamoon Hamid popularized 4 as the bar the best early-stage companies clear, which is why it has become a standard board-deck metric.

How to calculate it

Gross gains = new MRR + expansion MRR.
Gross losses = churned MRR + contraction MRR.
Quick ratio = gross gains ÷ gross losses.
Net new MRR = gross gains − gross losses, the revenue you actually kept.

The calculator above works these out, shows your gains and losses side by side on the same scale so you can see the imbalance, and grades the ratio against the usual benchmarks.

Reading your ratio

Above 4. Strong and efficient. Growth is stacking up far faster than it leaks, which is where investors want an early-stage SaaS to be.
2 to 4. Still growing, but more of it is draining away. Worth finding out whether the leak is churn or contraction before you spend more on acquisition.
1 to 2. Fragile. You are barely ahead, so a bad quarter of churn can tip you into shrinking.
Below 1. The base is contracting. You are losing more than you add, and no amount of new logos fixes a leaking bucket on its own.

If losses are the bigger bar, retention is the lever, so start with the Net Revenue Retention Calculator to see how much the base gives back on its own. If gains are healthy but you want to grow them more efficiently, the LTV:CAC Calculator checks whether the new business you are adding pays for itself.

Frequently asked questions

What is the SaaS quick ratio?

A growth-efficiency metric that divides the recurring revenue you added, new plus expansion, by the recurring revenue you lost, churn plus contraction. A ratio of 4 means four dollars added for every dollar lost.

How do you calculate the SaaS quick ratio?

Add new and expansion MRR for gross gains, add churned and contraction MRR for gross losses, then divide gains by losses. 40,000 plus 20,000 in gains against 10,000 plus 5,000 in losses gives a quick ratio of 4.

What is a good SaaS quick ratio?

Above 4 is strong for an early-stage SaaS, the benchmark popularized by investor Mamoon Hamid. 2 to 4 still grows but leaks more, 1 to 2 is fragile, and below 1 the company is shrinking.

How is the quick ratio different from net revenue retention?

Net retention looks only at existing customers and ignores new business. The quick ratio includes new customers in the gains, so it measures the efficiency of total growth, not just how well you hold the base.

Methodology. Quick ratio = (new MRR + expansion MRR) ÷ (churned MRR + contraction MRR). Net new MRR = gains − losses. When losses are zero the ratio is unbounded and shown as growth with no offsetting loss. The two bars are drawn to a shared scale set by the larger of gains and losses. Bands used: below 1 shrinking, 1 to 2 fragile, 2 to 4 growing, above 4 strong.