SaaS Quick Ratio Calculator

How to calculate Quick Ratio calculator?

The Quick Ratio measures how effectively a SaaS business converts revenue gains into coverage for revenue losses. It compares new and expansion MRR against churn and contraction MRR.

Use the formula: Quick Ratio = (New MRR + Expansion MRR) / (Churn MRR + Contraction MRR)

Using the Quick Ratio calculator calculator: an example

Below are example monthly MRR values and a concise walkthrough of the calculation.

Step-by-step calculation:

1. Enter gains: New MRR = $50,000 and Expansion MRR = $10,000, total gains = $60,000.
2. Enter losses: Churn MRR = $5,000 and Contraction MRR = $3,000, total losses = $8,000.
3. Divide gains by losses: $60,000 ÷ $8,000 = 7.5.
4. Interpretation: a Quick Ratio of 7.5 shows strong revenue growth relative to losses; values >1 indicate net growth.

Frequently Asked Questions

What is a healthy Quick Ratio?

A ratio above 1 indicates you are adding more recurring revenue than you are losing; many high-growth SaaS companies target 4 or higher for strong momentum.

How often should I calculate the Quick Ratio?

Calculate it monthly to monitor MRR trends and detect changes in growth efficiency early.

Does the Quick Ratio include one-time revenue?

No. The Quick Ratio focuses on recurring MRR components and excludes one-time or non-recurring revenue to keep the metric consistent.