Divide revenue gained through new and expansion business by revenue lost to churn and contraction.
The ratio divides one figure by the other and is read against a conventional benchmark of 4. Both the ratio and its percentage form are shown, because different audiences expect different presentations of the same number. A growth-quality ratio compresses two absolute figures into one comparable number, which is what makes it usable across companies and periods of different size.
SaaS Quick Ratio
SaaS Quick Ratio = New plus expansion MRR ÷ Churned plus contraction MRR
SaaS Quick Ratio = New plus expansion MRR ÷ Churned plus contraction MRR The ratio divides one figure by the other and is read against a conventional benchmark of 4. Both the ratio and its percentage form are shown, because different audiences expect different presentations of the same number.
A growth-quality ratio compresses two absolute figures into one comparable number, which is what makes it usable across companies and periods of different size.
This calculator takes 2 inputs: New plus expansion MRR, Churned plus contraction MRR. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.