SaaS Quick Ratio

A SaaS growth-efficiency KPI (also called SaaS quick ratio). Distinct from accounting acid-test quick ratio and from NRR.

Quick ratio = growth MRR ÷ lost MRR.

Tip: Keep “New MRR” and “Expansion MRR” on the same basis (period, units, and population) before calculating SaaS Quick Ratio.

Cluster: SaaS hub · NRR · Magic number · DevOps hub · Percentage guide

SaaS quick ratio compares growth MRR (new + expansion) to lost MRR (churned + contraction).

Enter new, expansion, churned, and contraction MRR for the same period.

$
New logo MRR
$
Expansion MRR
$
Fully churned MRR
$
Downgrade / contraction MRR

Quick Ratio

Understanding SaaS Quick Ratio

How we calculate. Quick ratio = growth MRR ÷ lost MRR. The form uses the same arithmetic as the worked examples on this page. See our methodology and accuracy policy.

Real-world scenario: A typical SaaS Quick Ratio case uses new mrr 40000 and expansion mrr 20000. Enter the same figures below to reproduce the worked path.

What is SaaS Quick Ratio?

A SaaS growth-efficiency KPI (also called SaaS quick ratio). Distinct from accounting acid-test quick ratio and from NRR.

  • Growth MRR = new + expansion
  • Lost MRR = churned + contraction
  • Same period

The Formula

SaaS Quick Ratio
Quick ratio = (New MRR + Expansion MRR) ÷ (Churned MRR + Contraction MRR)

Worked Example

Scenario: New $40,000; expansion $20,000; churned $10,000; contraction $5,000.
Step 1: Growth = 40000 + 20000 = 60000
Step 2: Lost = 10000 + 5000 = 15000
Step 3: 60000 ÷ 15000 = 4
Answer: Quick ratio is 4.0×.

Common Use Cases

  • Board packs: growth vs churn speed
  • Cohort health: expansion offsetting churn
  • Fundraising: SaaS quick ratio trend

Pro Tips

  • Don’t confuse with accounting acid-test ratio
  • Pair with NRR / GRR
  • Freeze new vs reactivation labels

Limitations: SaaS Quick Ratio results are educational SaaS / subscription planning aids—not accounting, tax, or investment advice. Confirm definitions with your billing system and board reporting standards.

FAQ

Same as accounting quick ratio?

No. Accounting quick ratio is liquid assets ÷ current liabilities. This page is SaaS growth MRR ÷ lost MRR.

What if churned + contraction is 0?

Quick ratio is undefined—enter positive lost MRR (or note infinite when there is no lost MRR).

Authoritative References

For SaaS metrics and subscription performance concepts, consult: