SaaS Quick Ratio Calculator
The SaaS quick ratio measures how efficiently you grow by comparing recurring revenue gained to recurring revenue lost in a period. It puts new and expansion MRR over contraction and churned MRR, answering a simple question: for every dollar of recurring revenue you lost, how many did you gain? Note this is not the accounting quick ratio. Enter your new, expansion, contraction, and churned monthly recurring revenue. This calculator returns the quick ratio and the net new MRR for the period.
SaaS quick ratio formula
Gained MRR = new MRR + expansion MRR
Lost MRR = contraction MRR + churned MRR
Quick ratio = gained MRR / lost MRR
Net new MRR = gained MRR - lost MRR
The ratio frames growth as gains over losses. A higher ratio means revenue added far outweighs revenue lost in the period.
Interpreting the quick ratio
- A quick ratio of roughly 4 or higher is a common marker of efficient growth; it is a convention, not an official rule.
- A ratio near 1 means new revenue barely replaces lost revenue.
- Use the same period and MRR definition for all four inputs.
- Pair the ratio with net new MRR to see direction and magnitude together.
- Public SaaS company SEC filings provide comparable revenue movement data.
SaaS quick ratio: frequently asked questions
What is the SaaS quick ratio?
The SaaS quick ratio measures growth efficiency by comparing recurring revenue gained to recurring revenue lost in a period. It is new plus expansion MRR divided by contraction plus churned MRR. It is different from the accounting quick ratio.
How is the SaaS quick ratio calculated?
Add new MRR and expansion MRR, then divide by the sum of contraction MRR and churned MRR. A quick ratio of 4 means you gained four dollars of recurring revenue for every dollar lost.
What is a good SaaS quick ratio?
A frequently cited convention is that a quick ratio of about 4 or higher indicates healthy, efficient growth, while a ratio near 1 means gains barely offset losses. These are industry conventions, not official benchmarks.
How does it differ from net dollar retention?
Net dollar retention focuses only on the existing base over the starting revenue. The quick ratio includes brand-new MRR in the numerator and frames everything as a gain-to-loss ratio, so it captures acquisition as well as retention.
What does net new MRR show?
Net new MRR is new plus expansion minus contraction minus churned MRR. It is the absolute change in monthly recurring revenue for the period, complementing the ratio with a dollar figure.
Official sources
- U.S. Securities and Exchange Commission: EDGAR company filings.
- U.S. Securities and Exchange Commission: Guidance on Management's Discussion and Analysis.
Reviewed by the CalculatorHub team, edited by James Graham, 16 June 2026. See our methodology.