SaaS Quick Ratio
Also called Quick Ratio
A SaaS growth-quality metric comparing revenue gained (new plus expansion) to revenue lost (churn plus contraction) in a period. A ratio of 4 means you add four units of revenue for every one lost.
Quick ratio = (new MRR + expansion MRR) / (churned MRR + contraction MRR)
Why it matters
The quick ratio shows how efficiently you grow net of losses. A high ratio means growth is durable; a low one means you are running hard just to offset churn.
For example
A SaaS business adds 40 lakh of new and expansion MRR while losing 10 lakh to churn, a quick ratio of 4, healthy growth net of losses.
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Also in Starting Up
See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.
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