SaaS 2028 Quick Ratio
Quick Ratio: net new MRR / lost MRR. >4 = healthy growth. 1.5-4 = sub-optimal. <1 = revenue shrinking. Best paired with NRR for full picture.
| MRR gained (new + expansion) | — |
| MRR lost (churn + contraction) | — |
| Quick Ratio | — |
| Tier | — |
Quick Ratio: (New MRR + Expansion MRR) / (Churn MRR + Contraction MRR). Mamoon Hamid coined this metric at Social Capital. >4 = healthy growth. 1.5-4 = growing but on a treadmill (lots of churn). <1 = shrinking. Different from NRR — Quick Ratio includes new customer sales, NRR only existing cohort.
Quick Ratio vs NRR
NRR: cohort behavior (existing customers only). Quick Ratio: includes new customer sales. A company can have 90% NRR but 4 Quick Ratio if new sales heavily outpace churn. But 90% NRR is still bad — both metrics matter.
Treadmill Trap (QR 1.5-2)
Company growing but churning heavily. New sales replacing churn instead of compounding. Tons of motion, no real growth. Common pattern: high CAC + poor onboarding + niche product. Fix retention before fixing growth.
Best Use Case
Quick Ratio fastest sanity check on early-stage SaaS. Combined with: Net new MRR trend (improving over months?), CAC payback (efficient acquisition?), NRR (cohort health). Three together paint complete picture.
Last updated May 2026. Sources: Kleiner Perkins.