⚡ Quick Ratio Calculator

Measure growth efficiency in one number.

What is Quick Ratio?

SaaS Quick Ratio (pioneered by Social Capital) measures growth efficiency by comparing revenue gains to revenue losses. It's a single number that tells you if your SaaS is healthy, stalling, or dying.

Quick Ratio = (New MRR + Expansion MRR + Resurrected MRR) / (Churned MRR + Contraction MRR)

• Numerator (Growth): All new revenue — new customers, upgrades, reactivations
• Denominator (Loss): All lost revenue — churned customers, downgrades

How to Interpret

< 1.0
Dying — Revenue shrinking
1.0 - 2.0
Stalling — Growing but fragile
2.0 - 4.0
Healthy — Sustainable growth
> 4.0
Excellent — Hypergrowth

Example Calculation

Monthly MRR Movements
📈 Gains:
New customers: +$15,000
Expansion (upgrades): +$5,000
Resurrected (reactivations): +$2,000
Total Gains: $22,000

📉 Losses:
Churned customers: -$8,000
Contraction (downgrades): -$3,000
Total Losses: $11,000

⚡ Quick Ratio = $22K / $11K = 2.0
✅ Healthy, but not hypergrowth

Quick Ratio by Stage

• Pre-PMF: Don't focus on Quick Ratio yet. Fix retention first.
• Early Growth ($1M-$5M ARR): Target > 2.0. Below 1.5 means churn is killing you.
• Scale ($5M-$20M ARR): Target > 3.0. Should have product-market fit + efficient acquisition.
• Hypergrowth ($20M+ ARR): Target > 4.0. Expansion revenue should exceed churn.

Improving Your Quick Ratio

Increase numerator:

• Better lead generation (higher new MRR)
• Usage-based pricing (expansion MRR)
• Win-back campaigns (resurrected MRR)

Decrease denominator:

• Reduce churn (better onboarding, customer success)
• Prevent downgrades (usage alerts, plan optimization)
• Annual contracts (reduce monthly churn)

Get the Full Quick Ratio Calculator

Interactive calculator with MRR movement tracking, trend analysis, and benchmarking.