SaaS Quick Ratio Calculator — Growth Efficiency Score
Calculate your SaaS Quick Ratio — the ratio of inflow MRR (new + expansion) to outflow MRR (churn + contraction). A score above 4 signals healthy growth efficiency.
What Quick Ratio Measures
Quick Ratio = (New MRR + Expansion MRR) ÷ (Churned MRR + Contraction MRR). Tells you how efficiently you're growing — adding new revenue faster than losing it. SaaStr benchmark: 4+ healthy, 2-4 OK, <1 in trouble.
Why It Beats Net Revenue Retention Alone
NRR shows whether existing customers grow or shrink. Quick Ratio shows whether NEW + EXPANSION outpace CHURN + CONTRACTION. A company can have NRR 110% (good) but Quick Ratio 1.5 (warning) if growth is mostly from price hikes vs new customers.
Time Period
Calculate monthly or quarterly. Monthly is volatile — use trailing 3-month rolling average. Quarterly smooths noise but slower to detect deterioration.
Improving the Ratio
Two levers: increase numerator (sales, expansion playbooks) OR decrease denominator (churn reduction, customer success). Most ratios improve fastest via churn reduction — preventing $1 of churn is cheaper than acquiring $1 of new MRR.
Source: Mamoon Hamid Quick Ratio formula, SaaStr benchmarks. Last updated: May 2026.