What is a good SaaS Quick Ratio?

A Quick Ratio above 4.0x is considered top-tier growth efficiency, meaning additions (new bookings + expansion) are four times greater than revenue leakage (contraction + churn).

Updated: August 2026 • Verified v1.2

SaaS ARR Waterfall Bridge & Net Retention Rate (NRR) Calculator

Finance & MathNew

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Ending_ARR = Starting_ARR + New_Bookings + Expansion - Contraction - Churn; NRR = (Starting_ARR + Expansion - Contraction - Churn) / Starting_ARR * 100

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Understanding Your Results

Computes Ending ARR, Net New ARR, Net Retention Rate (NRR), Gross Retention Rate (GRR), SaaS Quick Ratio, and displays an interactive visual ARR bridge bar breakdown.

Practical Guidance & Next Steps

Top-quartile enterprise SaaS companies maintain NRR greater than 120% and Gross Retention Rate greater than 90%, with a SaaS Quick Ratio exceeding 4.0x.

What is this?

A financial utility that decomposes SaaS Annual Recurring Revenue into new bookings, expansion, contraction, and churn to model retention and growth efficiency.

How does it work?

1. Enter Starting ARR, New Customer Bookings, and Expansion ARR. 2. Enter Contraction and Churned ARR. 3. View Ending ARR, NRR, GRR, SaaS Quick Ratio, and visual waterfall bridge bar.

Why use it?

Essential for SaaS founders and CFOs preparing board decks, valuation models, and investor due diligence reports.

Technical Scope & Calculation Limitations

Calculates recurring revenue movements over any user-defined period (quarterly, annual).

Frequently Asked Questions

NRR measures the percentage of recurring revenue retained from existing customers over a period including expansion, contraction, and churn. Over 100% means expansion outpaces churn.

Windows Desktop & Widget Options