SaaS Quick Ratio. Growth efficiency at a glance.
Enter new MRR, expansion MRR, churned MRR, and contraction MRR. Get the Quick Ratio plus a stage-aware verdict (seed, Series A, B, C, growth) explaining whether the business is compounding or treading water.
2 engines + 2 leaks.
Ratio + verdict.
A growth-efficiency truth serum.
SaaS Quick Ratio is (New MRR + Expansion MRR) divided by (Churned MRR + Contraction MRR). It collapses the four MRR movements into a single number that boards use to compare companies against stage benchmarks. The metric was popularized by Mamoon Hamid at Social Capital and is now a standard Bessemer State of the Cloud efficiency benchmark. The calculator above shows your ratio against stage range plus the gross numerator and denominator so you see which engine (new vs expansion) and which leak (churn vs contraction) is moving the number.
Three operating principles. One, push the numerator at early stage and the denominator at late stage — at seed and Series A, churn is mostly avoidable and the easiest lever is more new MRR. By Series C, churn is unavoidable at scale and the highest-ROI work is reducing contraction and reactivating expansion. Two, pair Quick Ratio with NRR for the complete picture — Quick Ratio shows the efficiency of new bookings activity; NRR shows the same-cohort revenue motion. Three, never report Quick Ratio without the data window — a one-month spike from a large enterprise renewal can mislead board calls.
Tools in the same cluster: SaaS Magic Number for sales-efficiency view. LTV/CAC Ratio for unit-economics view. Churn Rate Calculator for the denominator decomposition.
Six answers.
What is the SaaS Quick Ratio?
Quick Ratio measures growth efficiency. The formula is (New MRR + Expansion MRR) divided by (Churned MRR + Contraction MRR). The metric was popularized by Mamoon Hamid (Social Capital, then Kleiner Perkins) and is now a standard SaaS-board metric. A Quick Ratio of 4 means the business adds $4 of new MRR for every $1 lost to churn or downgrade — a healthy compounding posture. A ratio under 1 means the business is losing more MRR than it adds.
What's a good SaaS Quick Ratio by stage?
Stage benchmarks: Seed-stage SaaS (under $1M ARR) targets 4+ Quick Ratio, since absolute MRR moves are small and churn is mostly avoidable. Series A ($1-5M ARR) targets 3-4. Series B ($5-20M ARR) targets 2.5-3.5. Series C and growth-stage SaaS ($20M+ ARR) targets 2-2.5 (the law of large numbers — at scale, churn is unavoidable and ratios compress). Below 2 at any stage is a board-level concern; below 1 means the business is shrinking before sales activity.
How is Quick Ratio different from Net Revenue Retention (NRR)?
NRR measures the same-cohort revenue change including new sales to existing customers, expressed as a percentage. Quick Ratio is a forward-looking efficiency ratio for new bookings activity. NRR > 100% can hide poor new-acquisition performance if expansion compensates for slow new logo growth. Quick Ratio surfaces both engines (new + expansion) on the numerator and both leaks (churn + contraction) on the denominator separately, making it harder to hide weak new-business motion behind strong customer-success expansion.
Should I use monthly or quarterly data?
Most SaaS operators report Quick Ratio monthly because MRR movements are noisy and one-month spikes from a large signup or large churn event can mislead board decisions. Quarterly Quick Ratio smooths the noise and is the standard for board reporting; monthly Quick Ratio is the standard for internal pulse checks. The calculator above accepts both — just feed it the totals for whichever window you're reporting on.
What lifts the Quick Ratio?
Two engines, two leaks. Lift new MRR via paid acquisition payback under 12 months and self-serve onboarding conversion. Lift expansion MRR via usage-based pricing tiers and customer success outbound (the highest-ROI customer-success motion at most B2B SaaS). Reduce churn MRR via 30-day-onboarding-success focus (90% of B2B SaaS churn happens in months 1-6). Reduce contraction via annual contracts that lock in ARPU and quarterly business reviews on enterprise accounts.
Does this tool save my data?
No. Every value lives in this browser tab only. Nothing is sent to any server. Closing the tab clears the data. The Copy Results button puts a plain-text summary on your clipboard.
Quick Ratio below stage?
Our SaaS development engagements ship onboarding flows, usage-based pricing tiers, and the customer-success motion that lifts the numerator while compressing the denominator.
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