SaaS Quick Ratio Calculator
Calculate SaaS Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR). Above 4 = elite growth efficiency.
| Total Inflow (New + Expansion) | — |
| Total Outflow (Churn + Contraction) | — |
| Quick Ratio | — |
| Net New MRR | — |
| Best-in-class Target (4+) | — |
Calculate SaaS Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR). Above 4 = elite growth efficiency. Cite official methodology in your communications — sources linked below.
How the Calculation Works
SaaS Quick Ratio measures growth efficiency: (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR). Best-in-class SaaS hits 4+ (4 dollars in for every $1 out). Source: Mamoon Hamid (Kleiner Perkins) 2014.
Benchmarks and Use Cases
Quick Ratio benchmarks by stage: <$5M ARR median 3-5 (high churn typical at SMB end), $5-50M ARR median 2-3, $50M+ ARR median 1.5-2. Public SaaS averages 1.5 (post-correction). Above 4: hyper-growth (Snowflake/Datadog era). Below 1: shrinking — investor flag.
Common Mistakes and Limitations
Common mistakes: (1) Treating reactivations as new MRR (should be excluded). (2) Including downgrades as churn when really contraction. (3) Computing on revenue not MRR (mixes one-time and recurring). (4) Comparing across segments — SMB QR will always be lower than Enterprise due to higher SMB churn.
Last updated May 2026. Sources: Mamoon Hamid QR Essay, OpenView Benchmarks.