AllMyCalculators

SaaS Quick Ratio Calculator

Compares the MRR you added with the MRR you lost over a period.

Revenue from customers who joined in the period.

Upgrades and add-ons from existing customers.

Downgrades from customers who stayed.

Revenue from customers who cancelled.

Quick ratio
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MRR added —
MRR lost —
Net new MRR —
Reading this —

The formula

quick ratio = (new MRR + expansion MRR) ÷ (contraction MRR + churned MRR)

It shows how much MRR you add for each unit you lose. At 1, what comes in only replaces what goes out.

What to watch out for

Use the same period for all four figures. A single month can be noisy, so a quarter often gives a steadier reading.

Frequently Asked Questions

How do I calculate the SaaS quick ratio?

Add new and expansion MRR, then divide by contraction plus churned MRR. 5,000 and 2,000 against 500 and 1,000 gives 4.67.

What is a good quick ratio?

A quick ratio of 4 is a common investor rule of thumb for young, fast-growing companies, not a law. As the base grows, the same churn rate loses more MRR, so the ratio often falls.

What if no MRR was lost?

The ratio has no finite value, because it divides by zero. Look at net new MRR for that period.