SaaS Quick Ratio Calculator

Calculate your SaaS Quick Ratio below by providing your New MRR, Expansion MRR, Churn MRR, and Contraction MRR.

How much new monthly recurring revenue do you have?
How much revenue comes from expansion of existing customers?
How much revenue is lost due to churn?
How much revenue is lost due to downgrades or contraction?

Your SaaS Quick Ratio is:

4.00

Quick Ratio Calculator FAQ

What is SaaS Quick Ratio?

The SaaS Quick Ratio is a metric that measures the growth efficiency of a SaaS company by comparing the revenue gained from new and expansion MRR to the revenue lost due to churn and contraction MRR.

How do I calculate SaaS Quick Ratio?

SaaS Quick Ratio is calculated by adding New MRR and Expansion MRR, then dividing by the sum of Churn MRR and Contraction MRR. The formula is: SaaS Quick Ratio = (New MRR + Expansion MRR) / (Churn MRR + Contraction MRR)

Why is SaaS Quick Ratio important?

A higher SaaS Quick Ratio indicates that a company is effectively growing its recurring revenue and can offset losses due to churn and contraction. It helps SaaS companies understand their growth efficiency and financial health.

What are some strategies for improving SaaS Quick Ratio?

Some strategies for improving SaaS Quick Ratio include focusing on customer retention, up-selling and cross-selling to existing customers, reducing churn rates, and improving customer satisfaction.