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Growth efficiency in one number. (New ARR + expansion) divided by (churned + contracted) tells you whether your gains are outpacing your losses, and by how much. Classified into the Kleiner Perkins / Mamoon Hamid bands (≥4 exceptional · 2-4 healthy · 1.5-2 OK · 1-1.5 concerning · <1 bad), with explicit handling for the no-losses-yet edge case at early stage.
Quick ratio is the gross-flows view of growth efficiency: (new ARR + expansion ARR) divided by (churned ARR + contracted ARR). It expresses how many dollars of gross new ARR the business adds for every dollar of ARR it loses. Higher is better. >4 is best-in-class; <1 means the business is shrinking.
Mamoon Hamid (Kleiner Perkins) is broadly credited with popularising quick ratio as a SaaS-investor heuristic. It became standard in growth-stage diligence because it captures dynamics that NDR (net dollar retention) compresses away — two companies with the same NDR can have very different quick ratios.
≥4 exceptional (best-in-class growth efficiency), 2-4 healthy (top quartile), 1.5-2 OK (typical at scale), 1-1.5 concerning (net churn is dominating growth, investors will dig in), <1 bad (net ARR is shrinking — fix retention before scaling acquisition).
NDR compresses (expansion - churn - contraction) into a single multiplier on the starting ARR base. Quick ratio looks at the gross flows separately: how much you're winning AND how much you're losing. A company with 100% NDR and quick ratio of 4 is growing through both acquisition and retention; a company with 100% NDR and quick ratio of 1.2 is barely staying ahead of its own churn. Both look identical in NDR.
Monthly is right at early stage where churn dynamics matter quarter-over-quarter. Quarterly is right at scale where monthly noise dominates. Annual smooths over short-term churn dynamics you actually want to see — avoid unless you have a multi-year dataset.
Yes — every input is encoded in the URL. The 'Copy share link' button copies the current URL to your clipboard. Send it to your board, head of growth, or investor and they open the calculator with the same numbers.
Quick ratio completes the five SaaS metrics every growth-stage investor runs in diligence. Healthy companies score well on all five; discrepancies are diagnostic.
Whole-company
Per-cohort GTM
Per-customer
Lifetime + ratio
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Quick ratio
4.00×
Exceptional — best-in-class growth efficiency.
ARR gained
$1.2M
New + expansion ARR.
ARR lost
$300k
Churned + contracted ARR.
Net new ARR
$900k
Gained minus lost. Negative = shrinking.
Bands: ≥4 exceptional · 2-4 healthy · 1.5-2 OK · 1-1.5 concerning · <1 bad. Originated by Mamoon Hamid at Kleiner Perkins; broadly adopted by SaaS investors as a single-number readout of growth efficiency.
Why this metric: quick ratio captures the gross-flows view of growth that NDR (net dollar retention) compresses into a single ratio. Two companies with the same NDR can have very different quick ratios — the one with higher quick ratio is growing through acquisition AND retention; the one with lower quick ratio is barely staying ahead of its own churn.
Period choice: monthly for early stage, quarterly at scale. Annual smooths over short-term churn dynamics that you want to see.
The URL contains your inputs — drop into a board deck or investor update without retyping.
Educational tool. Real diligence pairs quick ratio with NDR, gross retention, and cohort retention curves. Not financial planning advice.