Efficiency
SaaS quick ratio calculator
Enter the recurring revenue you added and lost in a month. The calculator gives the SaaS quick ratio.
SaaS quick ratio
5
- Net new MRR
- $20,000
How to read the result
The ratio shows how hard growth has to work against leakage. The investor Mamoon Hamid, who introduced the measure, used 4 as the mark of efficient growth: four dollars added for each one lost. A ratio near 1 means you are running to stand still.
The formula
EfficiencyQuick ratio = (new MRR + expansion MRR) ÷ (churned MRR + contraction MRR).
Frequently asked questions
No. The accounting quick ratio compares liquid assets with short-term liabilities. This one borrows the name and measures recurring revenue growth.
A very high ratio in a young company usually just means there are few customers to lose yet. It settles as the base grows.
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