In Excel or Google Sheets, saaS quick ratio for a whole period is (SUM(AB2:AB7) + SUM(AC2:AC7)) / (SUM(AD2:AD7) + SUM(AE2:AE7)), where each SUM covers one column of monthly figures. On the sample data it returns 2.06×.
Quick ratio = (New MRR + Expansion MRR) ÷ (Contraction MRR + Churned MRR)
What you need
The SaaS quick ratio compares recurring revenue added with recurring revenue lost: new plus expansion MRR divided by contraction plus churned MRR. You need these columns, here from the sample file monthly.csv:
- New MRR: column AB (mrr_new)
- Expansion MRR: column AC (mrr_expansion)
- Contraction MRR: column AD (mrr_contraction)
- Churned MRR: column AE (mrr_churned)
Step by step
- Download monthly.csv below and open it: in Excel use File → Open; in Google Sheets use File → Import → Upload. The headers land in row 1 and the six months in rows 2 to 7.
- Click any empty cell and enter =(SUM(AB2:AB7) + SUM(AC2:AC7)) / (SUM(AD2:AD7) + SUM(AE2:AE7)) for the whole six months. It adds up each column first and then does the arithmetic once, which is the correct way to combine months.
- For each month, click AQ2, enter =(AB2 + AC2) / (AD2 + AE2) and drag the fill handle down to row 7.
- Format the results as a number with two decimals.
- If a month can have zero in the denominator, wrap the formula so it shows a blank instead of #DIV/0!: =IFERROR((AB2 + AC2) / (AD2 + AE2),"").
The formulas
=(SUM(AB2:AB7) + SUM(AC2:AC7)) / (SUM(AD2:AD7) + SUM(AE2:AE7))=(AB2 + AC2) / (AD2 + AE2)What you should get
Run against the sample data, the code above returns these values:
| Month | mrr_new | mrr_expansion | mrr_contraction | mrr_churned | quick_ratio |
|---|---|---|---|---|---|
| 2026-01 | 22,000 | 6,000 | 3,500 | 9,000 | 2.24× |
| 2026-02 | 24,500 | 7,200 | 4,100 | 10,200 | 2.22× |
| 2026-03 | 26,000 | 6,800 | 3,900 | 11,800 | 2.09× |
| 2026-04 | 21,500 | 7,400 | 4,600 | 12,900 | 1.65× |
| 2026-05 | 27,200 | 8,100 | 4,200 | 12,100 | 2.17× |
| 2026-06 | 29,800 | 8,600 | 4,800 | 13,400 | 2.11× |
| Whole period | 1,51,000 | 44,100 | 25,100 | 69,400 | 2.06× |
(₹1,51,000 + ₹44,100) ÷ (₹25,100 + ₹69,400) = 2.06×
Notes for Excel
- Google Sheets accepts the same formulas. If your spreadsheet locale uses a comma as the decimal separator, Sheets and Excel expect semicolons between function arguments instead of commas.
- Averaging the monthly results with AVERAGE() gives a different and usually wrong answer for the period, because every month counts the same however large it was.
- Excel tables (Insert → Table) let you write the same formula with column names instead of letters, which is easier to read and survives inserted columns.
Where saaS quick ratio misleads
- It is undefined when nothing was lost; small early-stage businesses get extreme values.
- It is unrelated to the accounting quick ratio (current assets over liabilities).
- Use the same MRR categories as net new MRR so the two reconcile.
The full explanation, with a calculator, is on the SaaS quick ratio page.
Same metric, other tools
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About the data on this page
The figures come from a small made-up dataset, printed above in full so you can check every number by hand. Download it as monthly.csv. The results are computed from those rows when the page is built, and the Excel formulas, SQL and Python on these pages are run against the same rows before publishing, so the code and the answers agree.
To get these numbers from your own data without writing formulas, try AnalyzeIt: ask in plain words and it shows the working behind every figure.
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