Who created the SaaS Quick Ratio?

The SaaS Quick Ratio was popularized by Mamoon Hamid at Social Capital as a single metric to evaluate how efficiently a software company grows without being masked by gross new bookings.

Updated: August 2026 • Verified v1.2

B2B SaaS Quick Ratio & Growth Efficiency Calculator

Q: What is a good SaaS Quick Ratio?

A SaaS Quick Ratio greater than 4.0x is considered excellent (top-quartile VC grade). A ratio between 2.0x and 4.0x is healthy. A ratio under 2.0x indicates serious retention issues where new sales are being cancelled out by churn.

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Quick_Ratio = (New_MRR + Expansion_MRR) / (Churn_MRR + Contraction_MRR); Net_New_MRR = Inflow - Outflow

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Understanding Your Results

Calculates SaaS Quick Ratio multiple, Net New MRR ($/mo and ARR), gross revenue additions vs losses, and evaluates company performance against VC benchmarks (>4.0x Top Quartile, 2.0x-4.0x Healthy, <2.0x Leaky Bucket).

Practical Guidance & Next Steps

A Quick Ratio of 4.0 means the company adds $4 of recurring revenue for every $1 lost to churn. Tier-1 VC funds look for sustained Quick Ratios above 4.0x.

What is this?

A venture finance utility that measures the revenue growth efficiency and churn resistance of subscription software businesses.

How does it work?

1. Enter New MRR and Expansion MRR (revenue additions). 2. Enter Churned MRR and Contraction MRR (revenue losses). 3. View Quick Ratio multiple, Net New MRR, and venture efficiency benchmark grade.

Why use it?

Reveals whether your SaaS growth is fundamentally sustainable or masked by unsustainable customer turnover.

Technical Scope & Calculation Limitations

Calculates standard Social Capital and Bessemer SaaS growth efficiency formulas.

Frequently Asked Questions

A SaaS Quick Ratio greater than 4.0x is considered excellent (top-quartile VC grade). A ratio between 2.0x and 4.0x is healthy. A ratio under 2.0x indicates serious retention issues where new sales are being cancelled out by churn.

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