SaaS Quick Ratio Calculator
Calculate the SaaS quick ratio from new, expansion, contraction and churned MRR across several months, with net new MRR, gross churn and net retention.
Monthly MRR movement
Columns, left to right: period name, new MRR, expansion MRR, contraction MRR, churned MRR.
| Period | Start MRR | New + expansion | Contraction + churn | Quick ratio | Gross churn | Net retention | End MRR |
|---|---|---|---|---|---|---|---|
| Month 1 | $500,000 | $105,000 | $30,000 | 3.50 | 6.0% | 103.0% | $575,000 |
| Month 2 | $575,000 | $103,000 | $35,000 | 2.94 | 6.1% | 102.3% | $643,000 |
| Month 3 | $643,000 | $123,000 | $30,000 | 4.10 | 4.7% | 103.3% | $736,000 |
Between 2 and 4 the business is compounding steadily. Most healthy SaaS companies past product-market fit sit here.
quick ratio = (new MRR + expansion MRR) ÷ (contraction MRR + churned MRR)
Worked example: $60,000 new plus $45,000 expansion against $12,000 contraction and $18,000 churn gives 105,000 ÷ 30,000 = 3.50. When contraction and churn are both zero the ratio is undefined, so the tool prints “No churn” instead of dividing by zero.
Every figure stays in your browser — nothing is uploaded, stored or sent anywhere. Estimates for planning only, not financial advice. The 4 / 2 / 1 bands are the widely quoted rules of thumb popularised by SaaS investors, not a formal standard, and they mean very different things at $50,000 MRR and at $5,000,000 MRR.
What is the SaaS Quick Ratio Calculator?
The SaaS quick ratio answers one question: for every dollar of recurring revenue you lose, how many do you add?
- Quick ratio for each month and for the whole window
- Net new MRR, ending MRR and average gross MRR churn
- Per-month gross churn and net MRR retention columns
- Prints “No churn” instead of dividing by zero when nothing churned
- Editable multi-month table with add and remove controls
- Result banded against the usual 4 / 2 / 1 growth thresholds
How to use the SaaS Quick Ratio Calculator
- 1
Pick your currency and enter the recurring revenue you started the first month with.
- 2
Fill one row per month with new MRR, expansion MRR, contraction MRR and churned MRR.
- 3
Use Add period for more months, or the bin icon to drop a row you do not need.
- 4
Read the overall quick ratio, net new MRR and ending MRR in the stat tiles.
- 5
Check the per-month table for the month where churn started outrunning growth.
About the SaaS Quick Ratio Calculator
The SaaS quick ratio answers one question: for every dollar of recurring revenue you lose, how many do you add? It divides new plus expansion MRR by contraction plus churned MRR, which makes it the fastest way to see whether growth is real or whether sales is simply refilling a leaking bucket.
Enter the MRR you started with, then a row per month for new, expansion, contraction and churned revenue. The tool computes the ratio for each month and for the window as a whole, alongside net new MRR, gross MRR churn and net MRR retention, so you can see which side of the equation is moving.
Everything is calculated locally in your browser. Your revenue figures are never uploaded, stored or sent to a server, so it is safe to model real numbers straight from your billing system. Months with no churn at all print a note rather than an infinity symbol, and the 4 / 2 / 1 thresholds it bands against are investor rules of thumb, not a standard. These are planning estimates, not financial advice.
Frequently asked questions
What is a good SaaS quick ratio?
Four or above is the number investors like to see: four dollars of new and expansion revenue for every dollar lost. Between two and four is a healthy, compounding business. Below one the recurring revenue base is shrinking, because churn and downgrades take more than sales and expansion bring in.
How do you calculate the SaaS quick ratio?
Add new MRR to expansion MRR, then divide by the sum of contraction MRR and churned MRR for the same period. If you added 60,000 of new and 45,000 of expansion while losing 12,000 to downgrades and 18,000 to cancellations, the ratio is 105,000 ÷ 30,000 = 3.5.
What happens if there was no churn at all?
The denominator is zero, so the ratio is mathematically undefined. This calculator prints “No churn” rather than an infinity symbol. In practice a zero-churn month usually means the window is too short or too small rather than that churn has genuinely stopped.
How is the quick ratio different from net revenue retention?
Net revenue retention only looks at the existing customer base — it excludes new logos entirely. The quick ratio deliberately includes new revenue, so it measures the whole growth engine against the whole leak. They answer different questions and it is worth tracking both.
Should expansion revenue include seat growth?
Yes. Any increase in recurring revenue from an account you already had counts as expansion: added seats, upgraded tiers, usage overages that recur. One-off professional services fees do not, because they are not recurring revenue.
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