Is your growth comfortably outrunning churn?

The SaaS quick ratio, popularised by Social Capital, divides the MRR you gained — new plus expansion — by the MRR you lost to churn and contraction in the same period. It's a single number that shows how efficiently your growth outpaces your losses. A quick ratio of 4, for example, means you added four dollars of MRR for every dollar you lost, which indicates growth that comfortably absorbs churn. It's a fast, intuitive complement to more detailed metrics like the MRR waterfall and net revenue retention.

A quick ratio of around 4 or higher is often cited as healthy for a growing SaaS business, meaning gains substantially outweigh losses. A ratio near 1 means you're barely staying ahead of churn — running hard just to grow slowly — and below 1 means losses exceed gains and revenue is shrinking. As with any single metric, the trend matters as much as the level: a quick ratio drifting down over several months warns that churn is catching up with growth, even if the absolute number still looks acceptable.

A ready-to-use spreadsheet (Excel & Google Sheets): the SaaS quick ratio month by month from new, expansion, and lost MRR, with the trend — delivered instantly after checkout. AI-assisted, human-built; not financial advice.