SaaS Quick Ratio Calculator 2026 Growth Efficiency Score

Revenue additions divided by revenue losses. A ratio of 4 means you add $4 for every $1 lost. Below 1 you are shrinking. Above 4 is elite. The cleanest growth-engine metric Mamoon Hamid put on a board deck.

MRR movement inputs

Additions (numerator)
$70.0K
New + Expansion MRR
Losses (denominator)
$17.0K
Churned + Contraction MRR
SaaS Quick Ratio
4.12x
Elite
Net new MRR: +$53.0K

The formula

Quick Ratio = New + Expansion / Churn + Contraction

Threshold guide

Quick RatioRatingWhat it means
< 1.0ShrinkingLosses exceed additions. Net new MRR is negative.
1.0-2.0Treading waterModest net positive. Growth dependent on continued acquisition.
2.0-4.0HealthySolid growth efficiency. Series A to B baseline range.
4.0+EliteTop-decile growth efficiency. Public-SaaS top performers.

Source: Mamoon Hamid (Social Capital) Quick Ratio framework, plus corroborating SaaS Capital and ChartMogul benchmarks 2025-2026.

Quick Ratio vs other efficiency metrics

Quick Ratio measures the ratio of inflows to outflows in absolute MRR. Magic Number measures the ratio of revenue growth to S&M spend. Burn Multiple measures the ratio of cash burn to net new ARR. NRR measures revenue retained from existing customers including expansion. All four answer different questions: Quick Ratio answers "are we replacing losses fast enough?", Magic Number answers "is our S&M productive?", Burn Multiple answers "is our capital efficient?", NRR answers "is our existing base growing?". A complete growth diagnostic uses all four.

Related

MRR CalculatorNRR CalculatorMagic NumberBurn Multiple

Frequently Asked Questions

What is the SaaS Quick Ratio?
SaaS Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR). It measures growth efficiency by comparing revenue additions to revenue losses. A Quick Ratio of 4 means you add $4 of revenue for every $1 lost. Below 1 means the business is shrinking. Above 4 is elite efficiency. The metric was popularised by Mamoon Hamid at Social Capital around 2015.
What does a high Quick Ratio mean?
A Quick Ratio above 4 means your acquisition and expansion engine substantially outpaces your churn and contraction losses. Companies at this level are net-positive even with material churn. Public SaaS top performers often run 4-8x quick ratios. The ratio captures growth quality independent of the absolute size of your revenue movements; a small company with 4x quick ratio is healthier than a large one at 1.5x.
What is the difference between Quick Ratio and NRR?
Both measure retention plus growth from existing customers, but the Quick Ratio adds new customer acquisition to the numerator. NRR = (Start - Churn + Expansion) / Start, focused entirely on existing customers. Quick Ratio adds new MRR to the top, so it captures the full picture of revenue inflows vs outflows. Use Quick Ratio for growth-engine evaluation; use NRR for existing-customer durability.
Can the Quick Ratio be negative?
No. The numerator is the sum of positive MRR movements (new and expansion) and the denominator is the sum of negative movements (churn and contraction). Both are positive numbers. The ratio is zero when there is no new or expansion MRR (you have a pure shrink situation) but cannot be negative.
How do you interpret a Quick Ratio of 1?
A Quick Ratio of 1 means your revenue additions exactly offset your losses. You are running on a treadmill: each month you replace exactly what you lose. Net new MRR is zero (or close to it). At this level, you are not growing on the existing customer base; any growth has to come from acquiring entirely new customers faster. Most operating SaaS at scale want a Quick Ratio of 2+ to be confident they are net-additive.

Updated May 2026