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SAZ
Finance & Strategy

SaaS Quick Ratio

Growth efficiency: new MRR vs. lost MRR.

Calculate Quick Ratio — (New + Expansion MRR) ÷ (Churn + Contraction MRR). Above 4 = excellent growth quality. Below 1 = the business is shrinking.

Inputs
Adjust to model your scenario
$45,000
$
$22,000
$
$12,000
$
$5,000
$
SaaS Quick Ratio
3.94×
Net new MRR
$50,000
Total MRR added
$67,000
Total MRR lost
$17,000
Formula
Quick Ratio = (New MRR + Expansion MRR) ÷ (Churn MRR + Contraction MRR)
Benchmarks
< 1Shrinking — crisis
1–2Inefficient growth
2–4Healthy growth
> 4Best-in-class
Need more than the math?

Get the SAZ team running this for your business.

Email info@Sedighi.ca or call (604) 632-4959. A senior partner responds within one business day.

Responding to inquiries within 1 business day