SaaS quick ratio calculator
Measure your revenue growth efficiency. Enter your MRR changes to see if your growth outpaces churn.
MRR inputs
Enter your monthly recurring revenue changes
Revenue gained
MRR from new customers this month
MRR gained from upgrades and upsells
Revenue lost
MRR lost from cancelled customers
MRR lost from downgrades
SaaS quick ratio
3.50
Good
Benchmarks
Why the quick ratio matters
Growth quality
Revenue growth means nothing if you are losing customers just as fast. The quick ratio reveals whether your growth is sustainable.
Investor signal
VCs use the quick ratio to assess SaaS health. A ratio above 4 signals strong product-market fit and efficient growth.
Churn diagnostic
A low quick ratio tells you to focus on retention before acquisition. Fix the leaky bucket before pouring more water in.
Frequently asked questions
What is the SaaS quick ratio?
The SaaS quick ratio measures revenue growth efficiency by comparing MRR gained (new + expansion) to MRR lost (churn + contraction). A ratio of 4 or higher is considered excellent. The formula is: (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR).
What is a good SaaS quick ratio?
A quick ratio above 4 is excellent and typical of top-performing SaaS companies. Between 2 and 4 indicates healthy growth. Between 1 and 2 means slow growth. Below 1 means your business is shrinking, as you are losing more revenue than you are gaining.
How is the SaaS quick ratio different from the accounting quick ratio?
The SaaS quick ratio is a subscription revenue metric that measures MRR growth efficiency. The accounting quick ratio (or acid-test ratio) measures short-term liquidity by comparing liquid assets to current liabilities. They share a name but measure completely different things.
How can I improve my SaaS quick ratio?
You can improve your quick ratio by either increasing the numerator (acquire more customers, improve upsell/expansion motions) or decreasing the denominator (reduce churn through better onboarding, customer success, and product improvements). Reducing churn typically has a bigger impact than acquiring new customers.