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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMarketing FinanceSaaS Quick Ratio

Marketing Finance

SaaS Quick Ratio

New plus expansion MRR divided by churned plus contraction MRR, measuring how efficiently a subscription business grows.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

The SaaS quick ratio is new plus expansion monthly recurring revenue divided by churned plus contraction monthly recurring revenue. It measures how efficiently a subscription business grows by comparing revenue added with revenue lost. A higher ratio means growth is outpacing churn, while a low ratio signals a leaky customer base.