EMD calculator
Enter the tender's estimated value and the EMD percentage it states. You get the deposit, a check against GeM's and GFR's ranges, and what changes if you're an MSE or a startup.
- EMD at the tender's rate
- ₹25,000
- Usual range here
- 0.5% to 5% (1% recommended)
- Valid until
- 45 days past bid validity
Based on: GeM GTC v1.29 (25 Mar 2026), EMD clause; GFR 2017 Rule 170. The tender document always decides.
How EMD is worked out
EMD, or earnest money deposit, is the bid security you put up so the buyer knows you won't walk away from your offer. It is a percentage of the tender's estimated value, and the tender names the percentage (some name a fixed sum instead). The calculator multiplies the two and checks the result against the rules that usually apply.
The GeM rule
GeM sets its own numbers in its General Terms and Conditions (version 1.29, 25 March 2026). Bids and reverse auctions with an estimated value under ₹5 lakh carry no EMD at all. Above that, GeM recommends 1% and lets the buyer pick anything from 0.5% to 5%. The bid security has to stay valid for 45 days beyond the bid validity. If you aren't exempt, upload a scanned copy with the bid and get the hard copy to the buyer within 5 working days of bid opening.
The GFR rule
For central government tenders outside GeM, Rule 170 of the General Financial Rules, 2017 puts bid security at 2% to 5% of the estimated value in the ordinary case. On a ₹50 lakh tender, that's ₹1 lakh to ₹2.5 lakh of working capital tied up until the refund.
Who doesn't pay
Micro and small enterprises with a valid Udyam registration are exempt under GFR Rule 170(i), and so are DPIIT-recognised startups. Nobody applies the exemption for you. Claim it in the bid, attach the certificate, and open the bid preview to check it's there before you submit. A bid that neither deposits EMD nor claims the exemption properly can be rejected. Traders don't qualify, works contracts sit outside the MSE policy, and a state buyer on GeM can ask MSEs for EMD if the bid's ATC says so.
Getting it back
If you lose, GeM's terms set the refund at 15 days from award or bid validity expiry, whichever comes first. GFR says no later than the 30th day after award. If you win, the EMD comes back once your performance security is accepted, not on the award itself. The ePBG calculator works out that next step.
Common questions
How is EMD calculated in a government tender?
Multiply the estimated value of the tender by the EMD percentage the tender states. On GeM the buyer picks 0.5% to 5% (1% is recommended), and bids under ₹5 lakh estimated value carry no EMD. Under GFR 2017 Rule 170, bid security is ordinarily 2% to 5% of the estimated value. Some tenders state a fixed EMD amount instead, and then that amount applies.
Is EMD required on GeM bids below ₹5 lakh?
No. Under the GeM General Terms and Conditions (version 1.29), bids and reverse auctions with an estimated value under ₹5 lakh need no bid security at all.
Do MSMEs have to pay EMD?
Micro and small enterprises with a valid Udyam registration, and DPIIT-recognised startups, are exempt under GFR Rule 170(i), but only if they claim the exemption in the bid and attach the certificate. Traders and works contracts are outside the MSE policy, and a state buyer on GeM can ask MSEs for EMD if the bid says so.
When is EMD refunded?
For unsuccessful bidders, GeM terms set 15 days from award or bid validity expiry, whichever is earlier, and GFR 2017 says no later than the 30th day after award. The winner gets the EMD back once the performance security is accepted.
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