Quick Ratio Calculator

Why It Matters

A ratio above 4 is often cited as a sign of strong, efficient growth, while a ratio near 1 means new and expansion revenue is barely offsetting what's being lost, a business effectively running in place no matter how much new logo growth is happening.

Example

A company adds $80,000 in new MRR and $20,000 in expansion MRR, while losing $15,000 to churn and $10,000 to contraction. Quick Ratio is ($80,000 plus $20,000) divided by ($15,000 plus $10,000), which equals 4, at the high end of what's considered healthy.

Frequently Asked Questions

• What's a healthy Quick Ratio?

  A ratio of 4 or higher is commonly cited as strong; a ratio near or below 1 signals growth is being offset almost entirely by churn and contraction.

• How is Quick Ratio different from Net Revenue Retention?

  NRR looks only at the existing customer base's revenue trajectory. Quick Ratio also factors in new customer MRR, giving a fuller picture of total revenue momentum, not just retention.