SaaS Quick Ratio Calculator

About this calculator

The SaaS Quick Ratio, popularized by finance operator Ben Murray, measures growth efficiency by dividing new MRR plus expansion MRR by churned MRR plus contraction MRR in the same period. A value above 4 signals healthy, efficient growth where new and expansion revenue vastly outpaces losses; a value near or below 1 means the business is losing roughly as much recurring revenue as it is adding, a warning sign even if the top-line MRR chart still looks like it is climbing.

SaaS finance teams and boards use this ratio alongside net revenue retention to separate "growth that is working" from "growth that is masking churn," since a company can post rising MRR every month while its underlying retention quietly deteriorates. It is a favorite diligence metric for investors precisely because it exposes that gap in a single number.

This calculator takes your new, expansion, churned and contraction MRR for a period and returns your SaaS quick ratio, so you can see at a glance how efficiently each dollar of growth is being generated relative to what you are losing.