What is a good SaaS Quick Ratio?

A Quick Ratio above 4 is excellent (you add $4 of revenue for every $1 lost). Above 2 is healthy. Between 1 and 2 means you are growing but inefficiently. Below 1 means you are shrinking. Mamoon Hamid of Social Capital popularized the 4x benchmark for venture-backed SaaS.

How is Quick Ratio calculated?

Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR). It measures how efficiently you grow revenue by comparing what you add against what you lose each month.

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Quick Ratio Calculator

The SaaS Quick Ratio measures the efficiency of your revenue growth. Are you adding revenue faster than you're losing it?

Quick Ratio Formula

(New MRR+Expansion MRR)÷(Churned MRR+Contraction MRR)

MRR Components

New MRR ($)Revenue from new customers

Expansion MRR ($)Upgrades, upsells, add-ons

Churned MRR ($)Revenue lost from cancellations

Contraction MRR ($)Revenue lost from downgrades

Quick Ratio

3.5

Healthy Growth

Total Gains

$7.0K

New + Expansion

Total Losses

$2.0K

Churned + Contraction

Quick Ratio Benchmarks

Excellent — Adding $4+ for every $1 lost. Very efficient growth.

2-4

Healthy — Strong growth with manageable churn. Target range.

1-2

Struggling — Growing but churn is eating into gains significantly.

< 1

Shrinking — Losing more revenue than gaining. Urgent: fix churn.

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Quick Ratio Deep Dive

Learn how to improve your Quick Ratio and what the best SaaS companies target.

MRR/ARR Calculator

Calculate your full MRR with all components broken down.

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MRR Calculator

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Churn Calculator

Reduce the denominator

Rule of 40

Growth-profit balance

Understanding the SaaS Quick Ratio

The Quick Ratio measures revenue growth efficiency by comparing how much MRR you add versus how much you lose. A high Quick Ratio means you're growing cleanly. A low one means churn is eating your growth. Read our Quick Ratio metric guide for benchmarks by stage.

Related SaaS Metrics

Quick Ratio is driven by MRR components (new, expansion, churn, contraction). To improve it, reduce churn rate or increase expansion revenue. Check your LTV:CAC ratio to ensure efficient acquisition, and customer LTV to understand long-term value. The SaaS Benchmarks Dashboard shows how your Quick Ratio compares to industry peers.