SaaS quick ratio formula in Excel or Google Sheets
Put the inputs in column B from row 2, then paste the formulas below. They work the same in Excel and Google Sheets.
| Cell | What | Value or formula | Example |
|---|---|---|---|
| B2 | New MRR ($) | 12000 | 12000 |
| B3 | Expansion MRR ($) | 4000 | 4000 |
| B4 | Churned MRR ($) | 3000 | 3000 |
| B5 | Contraction MRR ($) | 1000 | 1000 |
| B7 | MRR added ($) | =B2+B3 | 16000 |
| B8 | MRR lost ($) | =B4+B5 | 4000 |
| B9 | Quick ratio | =ROUND(B7/B8,2) | 4 |
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Frequently asked questions
- How do you calculate the SaaS quick ratio?
- Add new and expansion MRR, then divide by churned plus contraction MRR. $16,000 added against $4,000 lost gives a quick ratio of 4.
- What is a good SaaS quick ratio?
- A ratio of 4 or more is the usual benchmark for efficient growth. Between 1 and 4 you grow, but churn eats a large share of new sales. Below 1 the recurring base shrinks.
- How can customer success improve the quick ratio?
- By lowering the denominator: fewer cancellations and downgrades. Cutting churned MRR from $3,000 to $1,500 raises the ratio from 4 to 6.4 without one extra sale.
About the author
Abdessamad Ghanem
Customer Experience & Customer Success Consultant · Founder of Clarivoxx
Abdessamad Ghanem works across Customer Support, Sales, Customer Success, Account Management and Partner Management. He writes Clarivoxx Insights for B2B SaaS professionals who own retention, adoption and customer outcomes.