The SaaS quick ratio is a fast, single-number read on growth efficiency — how much new revenue you're adding for every dollar you're losing. It's not the same as the financial-accounting quick ratio (current assets ÷ current liabilities); the SaaS version is about revenue momentum.
SaaS quick ratio = (New MRR + Expansion MRR) ÷ (Churned MRR + Contraction MRR).
It compares everything pushing revenue up against everything dragging it down in a period. A ratio of 4 means you add $4 of new and expansion revenue for every $1 lost to churn and contraction.
In a month you add $8,000 new MRR and $3,000 expansion, and lose $1,500 to churn and $1,000 to contraction.
Quick ratio = ($8,000 + $3,000) ÷ ($1,500 + $1,000) = $11,000 ÷ $2,500 = 4.4.
Two companies can post identical net MRR growth with completely different health. One adds $5k and loses $1k (quick ratio 5); the other adds $20k and loses $16k (quick ratio 1.25). Same net, but the second is a leaky bucket spending hard to stay roughly even. The quick ratio exposes that in one number, which is why it's a fast screen for whether growth is durable or papered over.
A falling quick ratio with steady new MRR means churn and contraction are rising — a retention problem. A low ratio driven by weak new MRR is an acquisition problem. Because the formula separates the four components, the ratio also points you at which side to fix.
The template we recommend computes the quick ratio directly from the MRR movement breakdown, so you see the efficiency number and the four components that drive it together.
Quick ratio = (New MRR + Expansion MRR) ÷ (Churned MRR + Contraction MRR). It compares revenue gained against revenue lost in a period.
Above 4 is strong, efficient growth. 2–4 means losses eat a meaningful share of new revenue, 1–2 is barely growing, and below 1 means you're shrinking.
No. The accounting quick ratio is current assets ÷ current liabilities. The SaaS quick ratio measures revenue growth efficiency from MRR movement and is unrelated.
Page built 2026-06-14 from public, dated buying-intent signals. Updated as new signals land.