Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
SaaS Quick Ratio
3.46
Net new ARR (period)
$320,000
Total ARR gained
$450,000
Expansion share of gained ARR
33.3%
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How to use this
- 1Enter new arr from new customers ($).
- 2Enter expansion arr ($).
- 3Enter churned arr ($).
- 4Enter contraction arr ($).
- 5Read your saas quick ratio on the right — it updates as you type.
- 6Hit Share to keep the scenario or send it to someone.
About this calculator
The SaaS quick ratio compares revenue gained (new business plus expansion) against revenue lost (churn plus contraction) in the same period. A ratio of 4 means you generate $4 of new/expansion ARR for every $1 lost — a strong growth engine that can absorb some churn without stalling. A ratio near 1 means growth and losses are roughly canceling out, which is a plateau even if top-line ARR still ticks up slightly. Below 1, you're shrinking net of the noise even if bookings look fine on a dashboard. Rule of thumb: sustainable growth-stage SaaS wants a quick ratio of 4+ ; mature, larger companies often run 2-3 since law-of-large-numbers churn is harder to outrun proportionally. This metric is popular with VCs doing quick diligence because it needs only four inputs and instantly flags whether growth is coming from real net expansion or is being propped up by relentless new-logo acquisition covering a leaky base.
Worked example
Using the values the calculator loads with:
Inputs
- New ARR from new customers: 300000 $
- Expansion ARR: 150000 $
- Churned ARR: 90000 $
- Contraction ARR: 40000 $
Results
- SaaS Quick Ratio: 3.46
- Net new ARR (period): $320,000
- Total ARR gained: $450,000
- Expansion share of gained ARR: 33.3%
What each field means
Inputs
- New ARR from new customers ($)
- The new arr from new customers used in the calculation, measured in $. Starts at 300000 $ so you have a working example on load.
- Expansion ARR ($)
- The expansion arr used in the calculation, measured in $. Starts at 150000 $ so you have a working example on load.
- Churned ARR ($)
- The churned arr used in the calculation, measured in $. Starts at 90000 $ so you have a working example on load.
- Contraction ARR ($)
- The contraction arr used in the calculation, measured in $. Starts at 40000 $ so you have a working example on load.
Results
- SaaS Quick Ratio
- Returned as a decimal number and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Net new ARR (period)
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total ARR gained
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Expansion share of gained ARR
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
What quick ratio should I aim for?
4.0 or higher is the classic benchmark for early- and growth-stage SaaS, popularized by investor Mamoon Hamid. Ratios of 2-4 are acceptable for larger, more mature companies where absolute churn dollars are bigger even at a low churn rate. Below 1 means you're shrinking net of gross gains.
Why include contraction separately from churn in the denominator?
Contraction (downgrades, seat reductions) and full churn (lost logos) are different failure modes with different fixes — contraction often points to a packaging or usage problem while churn points to a value or competitive problem — but both belong in the denominator because both destroy the ARR you have to outrun.
Can quick ratio be misleading?
Yes, at small ARR bases a single big deal or single lost account swings the ratio wildly, so don't over-read month-to-month noise on early-stage numbers. It's most useful once you have enough deal volume that individual accounts don't dominate the calculation.
How does quick ratio relate to NRR?
They measure different things: NRR is retention-only (no new logos), quick ratio blends new-business growth with retention health into a single velocity number. A company can have great NRR but a mediocre quick ratio if new-logo growth has stalled.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Net Revenue Retention (NRR) Calculator
See how much revenue your existing customers generate a year later, expansion included.
Sales Magic Number Calculator
Measure how much new ARR your sales and marketing spend produces.
ARR Bridge Calculator
Break your ARR change down into new, expansion, contraction, and churn.
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). SaaS Quick Ratio Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/saas-quick-ratio
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/saas-quick-ratio" target="_blank" rel="noopener">SaaS Quick Ratio Calculator — RevenueLab</a> (2026).</p>
Source: [SaaS Quick Ratio Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/saas-quick-ratio) (2026).