Despite the shared name, this is an entirely different metric from this site’s balance-sheet quick ratio calculator — a SaaS-specific measure of growth efficiency.
How it works
New MRR plus expansion MRR, divided by churned plus contracted MRR, gives the SaaS quick ratio — a value of 4.0 is commonly cited as a strong industry benchmark.
What this does not include
This uses a single period’s MRR movements — trending the ratio over multiple periods gives a more reliable read on growth efficiency than any single month’s snapshot.
How to use this calculator
- Enter new MRR, expansion MRR, churned MRR, and contracted MRR for the same period.
Frequently asked questions
Why is it called “quick ratio” if it’s unrelated to the balance-sheet metric?
Both share the general idea of comparing an inflow against an outflow to assess health quickly, but the SaaS quick ratio was named independently within the SaaS metrics community and measures something entirely different.
What does a ratio of exactly 1.0 mean?
New and expansion revenue exactly offsets churned and contracted revenue — MRR is flat, neither growing nor shrinking from a growth-efficiency standpoint.
Is a very high SaaS quick ratio always good?
Generally yes, though an extremely high ratio combined with very low absolute churn can sometimes reflect too small a customer base to draw strong conclusions from yet.
