How to Calculate EMD for Indian Government Tenders

Earnest Money Deposit (EMD) is a refundable security that bidders must submit with government tenders in India. Here’s how to calculate it.

EMD Formula

EMD Amount = Tender Estimated Value × EMD Percentage

The EMD percentage is specified in each tender document. Typical ranges:

• Up to ₹10 Lakhs: 2–3%
• ₹10 Lakhs – ₹1 Crore: 1–2%
• Above ₹1 Crore: 0.5–1%

Step-by-Step Calculation

1. Find the estimated tender value in the tender document
2. Locate the EMD percentage (usually in the eligibility or financial section)
3. Multiply: Tender Value × (EMD% ÷ 100)
4. Round to the nearest rupee if required

Example

For a ₹50,00,000 tender with 2% EMD:

• EMD = 50,00,000 × 0.02 = ₹1,00,000

MSME Exemption

Udyam-registered MSMEs may be exempt from EMD under GFR Rule 170. Check the tender document for eligibility.

Use our free EMD Calculator to calculate your EMD instantly.