SaaS Quick Ratio calculator
Calculate your SaaS Quick Ratio — the ratio of MRR added (new + expansion) to MRR lost (churn + contraction). A ratio of 4 or higher signals durable growth.
Calculate your SaaS Quick Ratio
Enter MRR added (new + expansion) and MRR lost (churn + contraction). Ratio of 4 or higher signals durable growth.
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Quick Ratio
5.0
Net new MRR: +$44,000/mo
Quick Ratio = (New + Expansion) / (Churn + Contraction)
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What is the SaaS Quick Ratio?
Popularized by Mamoon Hamid (Kleiner Perkins), the SaaS Quick Ratio measures how efficiently you grow MRR. It separates good growth (more customers + expansion) from masked churn.
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How it is calculated
Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR).
If you added $100k of new and expansion MRR and lost $20k of churn and contraction, your Quick Ratio is 5.0.
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Benchmarks
- <2 — fragile; nearly as much churn as growth
- 2–4 — acceptable
- 4+ — durable growth; existing base is sticky
Public best-in-class SaaS hovers around 4.0–5.0 sustained.