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.

Related terms

Net Revenue Retention Churn Expansion Revenue

Go deeper

See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.

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