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How to use this Tool?

What is SaaS Quick Ratio?

Customer Acquisition Cost (CAC) is a sales and marketing term which refers to the total cost of acquiring a new customer, including marketing and sales expenses.

Why is it important?

A high SaaS quick ratio indicates strong growth and financial stability of the company, while a low quick ratio indicates a weak growth and lower financial stability of the company.

How does this calculator work?

This tool calculates the SaaS Quick Ratio using the formula:

SaaS Quick Ratio=(New MRR+Expansion MRR)/(Contraction MRR+Churned MRR)

You can simply input your values, and the calculator will provide an instant result.

How to use this tool?

You will need to input four key values:

1. New MRR: This refers to Monthly Recurring Revenue from new customers.
2. Expansion MRR: This refers to additional revenue added from existing customers through upgrades/add-ons.
3. Contraction MRR: This refers to revenue lost from downgraded subscriptions.
4. Churned MRR This refers to revenue lost from customers who left.

What is considered a good SaaS Quick Ratio?

A Quick Ratio above 4.0 is generally considered strong, that indicates that your product is on track with sustainable revenue growth. A ratio below 1.0 suggests that your revenue loss is outpacing your growth, which can be concerning and should be fixed as soon as possible.

Can I use this calculator for any SaaS business?

Yes! This calculator works well for every type of SaaS business be it an early stage startup or by a matured organization.

Does the calculator store my financial data?

No, this tool does not store or share any of your data. All calculations happen instantly and securely on your own browser.

Facing any Issue using the tool?

Contact us for any issues/feedback/suggestions.