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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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