EMD & Performance Guarantee Calculator
Bid security and performance security, what they cost and the cash they tie up.
Try before you buy.
- Free preview: the EMD and performance security amounts in full, with the first rows of the dates, costs and cash tables; every other figure is hidden.
- Locked until you unlock it: download and copy.
- Unlock: Premium pass, ₹799 for 30 days or ₹249 for 1 week, a one-time payment that never renews. Unlock: Premium pass, $19.99 for 30 days or $7.99 for 1 week, a one-time payment that never renews.
Ways to unlock shows how to get the full result.
Printing this result is locked in the free preview.
Your EMD and performance security
Key dates
| What | Day after submission | Date |
|---|
What each form costs for this tender
EMD
| Form | Commission or premium | Cash tied up | Interest lost | Total cost |
|---|
Performance security
| Form | Commission or premium | Cash tied up | Interest lost | Total cost |
|---|
Cash tied up, month by month (if you win)
| Month | EMD | Performance security | Total |
|---|
Your tenders
Keep each tender in this browser and see what all of them tie up together, month by month: the EMD of every bid, and the performance security of those you win.
| Tender | EMD | Performance security | EMD valid until | Security valid until | Cost |
|---|
| Month | Cash tied up |
|---|
The rules this page applies
- Bid security (EMD) ordinarily 2–5% of the estimated value, valid 45 days beyond the final bid validity, returned to unsuccessful bidders by the 30th day after the award. Not asked of micro and small enterprises under the MSE Procurement Policy, sellers registered with the Central Purchase Organisation or the concerned Ministry or Department, or DPIIT-recognised Startups; the buyer may take a Bid Securing Declaration instead. General Financial Rules 2017, rule 170
- Performance security 3–5% of the contract value for goods and services, valid 60 days beyond the completion of every obligation, warranty included; for works, performance security and security deposit or retention money together 3–10%. The EMD comes back to the winner on receipt of it. General Financial Rules 2017, rule 171
- Both may be given as a bank guarantee (an e-bank guarantee too), an insurance surety bond, a fixed deposit receipt, a demand draft or banker’s cheque, or online payment. General Financial Rules 2017, rules 170 and 171
- On GeM: no EMD below an estimated value of ₹5 lakh; 1% recommended, 0.5–5% selectable; returned within 15 days; performance security up to 5%, given within 15 days of the award, valid 2 months beyond every obligation and refunded within 30 days of completing them. GeM General Terms and Conditions, GTC 4.0, version 1.29, clauses 3 and 7
Sources: General Financial Rules 2017, as updated by the Department of Expenditure (opens in a new tab) · GeM General Terms and Conditions (opens in a new tab). Your tender’s own terms always win: change any figure above. Bank and insurer charges are your own quotes; the page never compares providers. An estimate to plan with, not financial or legal advice.
Last verified 14 Oct 2026 against these sources.
Locked in the free preview. Opens the ways to unlock this result.
Locked in the free preview. Batch runs unlock with a pass.
Locked in the free preview. Query results unlock with a pass.
Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
How this tool is checked
- Based on
- the rules of India, as set out under ‘The rules’.
- Sources
-
This guide cites 2 sources:
- Tests
- 14 automated tests check its results.
- Found an error?
- Report a problem or write to support@mysmartcopilot.com, with what you entered and the result you expected.
About the EMD & Performance Guarantee Calculator
Work out the bid security (EMD) and the performance security a tender asks for, how long each must stay valid, what each costs in the form you give it, and the cash each ties up month by month. Choose the rules that apply — goods and services under General Financial Rules 2017 rules 170 and 171, works, a GeM bid or your tender’s own terms — and the calculator applies their percentages, validity periods, refund times and exemptions: micro and small enterprises, DPIIT-recognised Startups, sellers registered with the buyer, and the Bid Securing Declaration a buyer may accept instead.
For each security it compares a bank guarantee (your bank’s commission for each started quarter, its charges, stamp duty and the margin money it keeps), an insurance surety bond, a fixed deposit receipt and a demand draft or online payment, with the interest the tied-up cash would have earned. You see what the securities cost if you win and if you lose, what to add to your price to recover it, and the most cash tied up at once — and, for every tender you keep, all of them together by calendar month.
Without a pass the result is a free preview: the EMD and performance security amounts in full and the first rows of each table; every cost, date and month, the comparison of forms, the schedule of your tenders and the PDF, Excel, CSV and copied summary come with a Premium pass. Your figures stay in this browser.
How to use it
- Choose the rules that apply and type the estimated value put to tender and your bid; the EMD and performance security percentages follow the rules, and you can type the figures your tender states, or the EMD amount the notice fixes.
- Choose an exemption if you have one, and set the bid’s validity, when you expect the award, the days to give the performance security, the delivery or execution period and the warranty.
- Choose how you give each security and open “Your bank’s and insurer’s terms” to type your bank’s commission, charges, cash margin and deposit interest, your cost of funds and any surety bond premium.
- Read the two amounts, their cost if you win and if you lose, the key dates and the cash tied up by month; keep the tender to add it to your schedule.
- With a Premium pass, or after unlocking this result, download the PDF or Excel report or the cash by month as CSV, or copy the summary.
Examples
Estimated value ₹80,00,000 · bid ₹76,50,000 · EMD 2% · performance security 5% · bid validity 90 days · award on day 60 · 4 months’ delivery and 24 months’ warranty · bank guarantees at 1.5% a year, 10% margin, deposits at 6.5%, funds at 12%
EMD ₹1,60,000 valid 135 days · performance security ₹3,82,500 valid 897 days · together they cost ₹20,894.61 if you win (0.273% of the bid); the EMD costs ₹1,416.99 if you lose.
Estimated value ₹4,50,000 on GeM
No EMD: GeM asks for none below ₹5 lakh of estimated value.
₹1,00,000 for a year · guarantee at 1.5% with 10% margin · deposit at 6.5% · funds at 12%
Bank guarantee ₹2,050 (₹1,500 commission + ₹550 on the margin) · fixed deposit ₹5,500 · demand draft ₹12,000
Common uses
- Bidders finding the EMD and performance security of a tender, and whether an exemption applies.
- Choosing between a bank guarantee, a surety bond and a fixed deposit for a security.
- Adding the cost of the securities to a quotation before pricing the bid.
- Finance teams planning the cash and bank limits that several tenders tie up at once.
The rules
- GFR 2017 rule 170 (goods): bid security ordinarily 2–5% of the estimated value, valid 45 days beyond the final bid validity, returned to unsuccessful bidders at the latest on the 30th day after the award; not asked of micro and small enterprises under the MSE Procurement Policy, sellers registered with the Central Purchase Organisation or the concerned Ministry or Department, or DPIIT-recognised Startups; the buyer may take a Bid Securing Declaration instead.
- GFR 2017 rule 171: performance security 3–5% of the contract value for goods and services, valid 60 days beyond the completion of every obligation, warranty included; for works, performance security plus security deposit or retention money together 3–10%. The bid security is refunded to the winner on receipt of it (General Financial Rules 2017).
- GeM: no EMD below an estimated value of ₹5 lakh; 1% recommended and 0.5–5% selectable, valid 45 days beyond bid validity and returned within 15 days; performance security up to 5%, given within 15 days of the award, valid 2 months beyond every obligation and refunded within 30 days of completing them (GeM General Terms and Conditions).
Your tender’s own terms always win: type them.
What each form costs
- Bank guarantee: commission = amount × rate a year × the quarters (or months, or days) it is valid, charged for each started one, at least your bank’s minimum; plus one-time charges and stamp duty; GST on the commission and charges is a cost only if you cannot claim it back; the cash margin the bank keeps costs your cost of funds less the deposit interest it earns, for as long as the buyer holds the guarantee.
- Insurance surety bond: the premium for its validity, with GST, and no cash margin.
- Fixed deposit receipt: the whole amount is tied up; it still earns its interest, so it costs the gap between your cost of funds and that interest.
- Demand draft or online payment: the whole amount is tied up and earns nothing until it comes back.
Validity and cash, day by day
The EMD must be valid for the bid’s validity plus 45 days, but it comes back sooner: by 30 days after the award if you lose (GeM: 15), and once your performance security is in if you win. The performance security runs from its submission to 60 days after the warranty ends (GeM: 2 months), and the buyer refunds it after every obligation is complete. A bank charges for the validity; the cash is tied up only while the buyer holds the security. With a submission date the page gives the dates; the month table shows the cash each security ties up in each month.
Limitations
- Bank commissions, margins and insurer premiums are your own quotes: the calculator does not know or compare providers’ rates.
- Stamp duty on a guarantee depends on the state: type it in the one-time charges.
- State governments, PSUs and other buyers set their own rules, and on GeM a State Government buyer may exempt only the MSEs of its own state. Use your tender’s terms.
- Security deposits held back from running bills of works are not worked out here: put them in the performance security percentage if your contract combines them.
- An estimate to plan with, not financial or legal advice.
Privacy
On this device; its files download once
Your figures are worked out in your browser and never uploaded. The tenders you keep and your bank’s terms stay in this browser’s storage until you remove them.
Frequently asked questions
What do I get without a pass?
Without a pass, EMD & Performance Guarantee Calculator shows the EMD and performance security amounts in full, with the first rows of the dates, costs and cash tables; every other figure is hidden. Until you unlock it, the result can’t be downloaded or copied. A Premium or Ultimate pass, a one-time payment that never renews, unlocks the full result. The pricing page lists the passes and their prices.
How much EMD does a government tender ask for?
Under GFR 2017 rule 170 the bid security for goods is ordinarily 2–5% of the estimated value, and the tender states the exact figure. On GeM there is none below ₹5 lakh of estimated value; above it GeM recommends 1% and the buyer may choose 0.5–5%.
What is the performance security percentage?
For goods and services under GFR 2017 rule 171, 3–5% of the contract value; for works, the performance security and the security deposit or retention money together are 3–10%. On GeM the buyer may ask up to 5%. It must stay valid 60 days (GeM: 2 months) beyond every obligation, warranty included.
Who is exempt from EMD?
Under GFR 2017, micro and small enterprises under the MSE Procurement Policy, sellers registered with the Central Purchase Organisation or the concerned Ministry or Department, and DPIIT-recognised Startups. On GeM, MSEs with Udyam registration that make the offered product or service, DPIIT Startups and the other sellers its terms list; a State Government buyer may limit the MSE exemption to MSEs of its own state if its bid says so.
What does a bank guarantee cost?
Your bank’s commission for the guarantee’s validity — usually charged for each started quarter — its one-time charges and stamp duty, and the interest the cash margin it keeps would have earned or saved. The calculator works it out from your bank’s terms and compares it with a surety bond, a fixed deposit and a demand draft.
What is a Bid Securing Declaration?
A declaration a buyer may accept instead of a bid security (GFR 2017 rule 170(iii)): if you withdraw or change your bid during its validity, or win and fail to sign the contract or give the performance security, you are suspended from the buyer’s tenders for the period the bid document states.
Do I need a pass?
To see every cost, date and month and download or copy the reports, yes: a Premium pass unlocks every Premium tool. Without a pass you see a free preview of your own result: the EMD and performance security amounts in full, with the first rows of the dates, costs and cash tables.