SaaS Quick Ratio Calculator

Quick ratio is the gross-flows view of growth efficiency: (new ARR + expansion ARR) divided by (churned ARR + contracted ARR). It expresses how many dollars of gross new ARR the business adds for every dollar of ARR it loses. Higher is better. >4 is best-in-class; <1 means the business is shrinking.

Mamoon Hamid (Kleiner Perkins) is broadly credited with popularising quick ratio as a SaaS-investor heuristic. It became standard in growth-stage diligence because it captures dynamics that NDR (net dollar retention) compresses away, two companies with the same NDR can have very different quick ratios.

≥4 exceptional (best-in-class growth efficiency), 2-4 healthy (top quartile), 1.5-2 OK (typical at scale), 1-1.5 concerning (net churn is dominating growth, investors will dig in), <1 bad (net ARR is shrinking, fix retention before scaling acquisition).

NDR compresses (expansion - churn - contraction) into a single multiplier on the starting ARR base. Quick ratio looks at the gross flows separately: how much you're winning AND how much you're losing. A company with 100% NDR and quick ratio of 4 is growing through both acquisition and retention; a company with 100% NDR and quick ratio of 1.2 is barely staying ahead of its own churn. Both look identical in NDR.

Monthly is right at early stage where churn dynamics matter quarter-over-quarter. Quarterly is right at scale where monthly noise dominates. Annual smooths over short-term churn dynamics you actually want to see, avoid unless you have a multi-year dataset.

Yes, every input is encoded in the URL. The 'Copy share link' button copies the current URL to your clipboard. Send it to your board, head of growth, or investor and they open the calculator with the same numbers.