SaaS Quick Ratio Calculator

MRR gained

MRR lost

Rule of thumb: above 4 is excellent, 2 to 4 is healthy and sustainable, 1 to 2 is a warning sign, and below 1 means you're losing more MRR than you're gaining.

What Quick Ratio actually tells you

Quick Ratio is total MRR gained divided by total MRR lost over the same period: (new MRR + expansion MRR) ÷ (churned MRR + contraction MRR). Unlike net new MRR — which just nets gains against losses — Quick Ratio is a ratio, so it exposes how much of your growth engine is fighting churn rather than adding to the top line. A business can post healthy net new MRR growth while its Quick Ratio quietly slides toward 1, meaning it's adding almost exactly as much as it's leaking — a much more fragile position than the net number alone would suggest.

It's a different lens than net revenue retention, which only looks at existing customers (expansion vs. contraction and churn among people who were already paying). Quick Ratio adds new-customer MRR into the numerator, so it answers a broader question: across the whole business — new deals included — is growth outpacing losses?

How to read the number

• Above 4: excellent — MRR gained is at least four times MRR lost, a strong, resilient growth engine.
• 2 to 4: healthy — growth is comfortably ahead of churn and contraction, generally considered a sustainable range.
• 1 to 2: caution — growth is only barely outrunning losses; a small uptick in churn could flip net MRR negative.
• Below 1: shrinking — more MRR is being lost than gained, regardless of how many new deals are closing.

Common mistakes

• Using net new MRR instead of Quick Ratio to judge growth health — net new MRR can look fine even while the ratio of gains to losses is deteriorating badly underneath it.
• Leaving expansion MRR out of the numerator, which understates the ratio for businesses that grow meaningfully through upsells.
• Comparing a single month in isolation — Quick Ratio is noisy month to month (one lost enterprise account can swing it hard); track it over a rolling quarter instead.
• Mixing up Quick Ratio with NRR — NRR excludes new customers entirely, so the two can tell very different stories about the same business.

Frequently asked questions

What's a good SaaS Quick Ratio?

Above 4 is excellent — MRR gained from new and expansion revenue is at least four times MRR lost to churn and contraction. 2 to 4 is healthy, sustainable growth. 1 to 2 is a warning sign — growth is barely outrunning losses. Below 1 means you're shrinking: losing more MRR than you're adding, even before counting how many new deals you closed.

How is Quick Ratio different from Net Revenue Retention?

NRR only looks at your existing customer base — expansion versus contraction and churn among people who were already customers, ignoring new sales entirely. Quick Ratio adds new MRR into the numerator, so it answers a broader question: across the whole business, new deals and all, is growth outpacing losses? A company can have weak NRR but a strong Quick Ratio if new sales are doing the heavy lifting, or vice versa.

Why not just look at net new MRR?

Net new MRR (gains minus losses) can look identical whether a business is adding a little and losing almost nothing, or adding a lot while also losing a lot. Quick Ratio is a ratio of gains to losses rather than a difference, so it exposes churn problems that a healthy-looking net number can hide — a business growing net MRR while its Quick Ratio quietly slides toward 1 is running on thinner and thinner margin for error.