How efficiently are you growing?
Enter your new, expansion, churned and contraction MRR for the month. See your quick ratio, your net new MRR, and whether your growth is running clean or leaking out the back.
This month's MRR
What your quick ratio says
The four forces on your MRR
Gains above the line, losses below
Growth scorecard
Where each dollar came from and went
The four components that make up your quick ratio, with each share of the total movement.
| Component | Amount | Direction | Share of movement |
|---|
Quick ratio, explained
Quick Ratio Formula
(New MRR + Expansion MRR) / (Churn MRR + Contraction MRR). Measures how efficiently you're growing despite losses. 4+ is excellent; below 1 means shrinking.
Why It Matters
Two companies can show same Net New MRR but very different efficiency. $10k new with $0 churn vs $20k new with $10k churn, same net, but the second is leaky. Quick ratio reveals this.
Targets by Stage
Early: 4+ (high growth, low churn). Growth: 2-4. Maturity: 1.5+. Decline: below 1. Investors use quick ratio to assess fundability.
Improving Quick Ratio
Reduce churn (better onboarding, customer success, NPS-driven product). Increase expansion (upsells, tiered pricing). Reduce contraction (prevent downgrades through engagement).
Common questions
How does quick ratio differ from net new MRR?
Net new is absolute dollars. Quick ratio is efficiency. $100k net new with 4 quick ratio is healthier than $100k with 1.5 quick ratio.
What's a 'good' quick ratio?
4+ excellent. 2-4 healthy. 1-2 marginal. <1 shrinking. Early-stage SaaS often hits 8-10 with low base.
Does this account for net dollar retention?
Quick ratio is a flow metric (this month). NDR is cohort-based (over time). Both useful, different views.
Why is my quick ratio falling?
Possible: churn rising (more cancellations), expansion stalling (no upgrades), new sales slowing. Investigate each component.
Should pre-revenue startups track this?
Once you have paying customers and churn data, yes. Before that, focus on activation and engagement.
Estimates for planning only. Quick ratio is a single-month flow metric and does not replace cohort retention, net dollar retention or a full financial review. Track it over several months before drawing conclusions.