Revenue

Growth Quick Ratio

The dollars you gain for every dollar you lose — your whole MRR bridge compressed into one number.

Growth quick ratio holds around 3–4× — dollars gained (new, expansion, reactivation) for every dollar lost to contraction and churn. Above 4× is elite; below 1× the book is shrinking.

What is it?

Growth Quick Ratio is the dollars you gain for every dollar you lose — new plus expansion plus reactivation MRR, divided by contraction plus churn MRR. It compresses your entire MRR bridge into a single efficiency number: how much of your gross growth actually sticks after losses.

It is a fast health check. Above 4× is elite — four dollars added for every one lost; around 2–3× is solid; at 1× you are treading water; below 1× the book is shrinking no matter how large your gross adds look.

How to calculate?

Sum new, expansion and reactivation MRR for the period, then divide by the sum of contraction and churn MRR. Seven thousand in gross adds against two thousand in losses is a quick ratio of 3.5×. Keep the same movement definitions you use everywhere else, or the ratio quietly drifts.

Read it as a trend, not a snapshot — a single strong month can hide a deteriorating one. A falling quick ratio is often the earliest sign that churn is catching up with growth.