SaaS Quick Ratio
Measure growth efficiency: new revenue vs. lost revenue.
QUICK RATIO
4.3
Excellent
Quick ratio = (new + expansion MRR) ÷ (churned + contraction MRR). 4 or higher is considered healthy.
What is SaaS Quick Ratio?
The SaaS quick ratio compares the MRR you're gaining (new + expansion) with the MRR you're losing (churn + contraction). It shows how efficiently — and durably — you're growing.
Quick ratio = (new + expansion MRR) ÷ (churned + contraction MRR)
How to read your result
- A ratio of 4 means you add $4 of MRR for every $1 you lose.
- 4+ is considered healthy for a growing SaaS.
- A ratio near 1 means growth is being cancelled out by churn.
- It rewards durable growth, not just top-line new sales.
Frequently asked questions
What is a good SaaS quick ratio?
A quick ratio of 4 or higher is generally considered healthy — it means new and expansion revenue comfortably outweighs churn and contraction.
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