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.
Frequently Asked Questions
What is a good Quick Ratio?
Best-in-class SaaS: 4+. Typical mid-stage: 2-4. Below 2 means growth is fragile. Below 1 means churn exceeds new business — death spiral.
Is Quick Ratio the same as Net Revenue Retention?
No. NRR measures existing customer revenue change. Quick Ratio includes NEW customer acquisition. A company can have great NRR (existing customers growing) but bad Quick Ratio (no new acquisition).
Monthly or annualized?
Calculate monthly for sensitivity to recent changes. Use trailing 3-month for stability. Don't annualize a single month's QR — it's a ratio, not a flow.
Why does Mamoon Hamid (Kleiner Perkins) recommend it?
QR exposes companies that look healthy on top-line revenue but actually have leaky bucket. Hamid uses it as primary growth health metric in SaaS investments.
Is my data private?
Yes. All calculations run in your browser. Inputs are never sent, stored, or shared.