SaaS Quick Ratio Calculator

Divide revenue gained through new and expansion business by revenue lost to churn and contraction.

About SaaS Quick Ratio Calculator

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.

Formula

SaaS Quick Ratio

SaaS Quick Ratio = New plus expansion MRR ÷ Churned plus contraction MRR

New plus expansion MRR: Numerator of the ratio
Churned plus contraction MRR: Denominator of the ratio

Worked example

With the default values below, SaaS Quick Ratio Calculator returns SaaS Quick Ratio of 3.500. Change any input above and every figure here is recalculated in your browser.

Inputs used

New plus expansion MRRminimum 0: 42,000
Churned plus contraction MRRminimum 0: 12,000

Results

SaaS Quick Ratio: 3.500
Expressed as a Percentage: 350.00%
Surplus Over the Benchmark: -0.500
Inverse Ratio: 0.286
Interpretation: Marginal — slightly below the benchmark of 4

Step by step

1Values used
2SaaS Quick Ratio
3SaaS Quick Ratio= 3.500
4Expressed as a Percentage= 350.00
5Surplus Over the Benchmark= -0.500
6Inverse Ratio= 0.286
7Interpretation= Marginal — slightly below the benchmark of 4

Assumptions and limits

The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is SaaS Quick Ratio calculated?

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.

Why does SaaS Quick Ratio matter?

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.

What values do I need to enter?

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.