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Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)
Example: New MRR Rs 5L + Expansion Rs 2L = Rs 7L added. Churn Rs 1.5L + Contraction Rs 0.5L = Rs 2L lost. Quick Ratio = 7/2 = 3.5x
Mamoon Hamid of Kleiner Perkins popularized the 4x benchmark. But in practice, 2-3x is excellent for Indian SaaS companies given the SMB customer mix (which churns more than enterprise).
Two companies both growing at 10% MoM. Company A adds Rs 10L and loses Rs 1L (Quick Ratio: 10x). Company B adds Rs 50L and loses Rs 40L (Quick Ratio: 1.25x). Same growth rate, completely different health. Company B is a leaky bucket: massive acquisition spend masking terrible retention. The moment acquisition slows, the business collapses.
Quick ratio is the vital sign. Growth rate is the headline.

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Frequently Asked Questions about SaaS Quick Ratio Calculator
The SaaS Quick Ratio measures growth efficiency by dividing MRR added (new + expansion) by MRR lost (contraction + churn). A ratio of 4 means you add Rs 4 for every Rs 1 lost.
Mamoon Hamid of Kleiner Perkins popularized 4.0 as the benchmark for healthy SaaS. Above 4 is excellent, 2-4 is good, below 2 needs attention.
NRR measures retention of existing customer revenue. Quick Ratio includes new customer acquisition. Quick Ratio shows overall growth efficiency while NRR focuses on existing customer health.
Either increase the numerator (more new customers, better upsells) or decrease the denominator (reduce churn, minimize downgrades). Churn reduction typically has the fastest impact.