Quick ratio
4.00
SaaS Quick Ratio Calculator
Enter new MRR, expansion MRR, churned MRR, and contraction MRR to measure how efficiently growth offsets recurring-revenue loss in the current period. This page is narrowly about the SaaS quick ratio, not the accounting liquidity quick ratio.
MRR-first calculator
Zero-loss and zero-activity handled explicitly
Target-gap planning included
MRR-first assumption
Use one recurring-revenue basis consistently. If your team tracks this metric in ARR, you can reuse the same formula with ARR inputs, but this page does not auto-convert MRR to ARR or relabel the outputs for you.
Decision-ready outputs
In addition to the current ratio, the calculator shows gross gain, gross loss, net new MRR, additional gain needed, max allowable loss at target, and a copyable board-note summary.
Inputs
Keep the period basis consistent across all four MRR inputs. Target quick ratio defaults to 4.0.
Core outputs
Gross MRR gained
$60,000.00
Gross MRR lost
$15,000.00
Net new MRR
$45,000.00
Additional gain needed
$0.00
Max allowable MRR loss at target
$15,000.00
Healthy
Current period performance already meets or exceeds the selected target quick ratio.
Detail rows
- New MRR
- $40,000.00
- Expansion MRR
- $20,000.00
- Churned MRR
- $10,000.00
- Contraction MRR
- $5,000.00
- Selected target quick ratio
- 4.00
- Required gain at current loss
- $60,000.00
- Loss reduction needed to hit target
- $0.00
- Health-band label
- Healthy
- State note
- Standard denominator logic
Copyable summary
Designed for board notes, KPI reviews, and internal planning docs.
FAQ
What counts as expansion MRR?
Expansion MRR is recurring revenue from existing customers who upgraded, added seats, bought add-ons, or otherwise increased recurring spend during the period.
What is the difference between churn and contraction?
Churned MRR is recurring revenue lost from customers who fully cancel. Contraction MRR is recurring revenue lost from existing customers who downgrade but do not fully leave.
Why is 4.0 a common benchmark?
A 4.0 quick ratio means gross recurring-revenue gains are four times gross recurring-revenue losses. It is a common shorthand for healthy growth efficiency, but it is still context-dependent by stage and go-to-market motion.
What happens if gross MRR loss is zero?
If gains are positive and gross loss is zero, the quick ratio is shown as Infinity with the note No MRR loss in the period. If both gain and loss are zero, the quick ratio is shown as N/A with the note No activity in the period.