Differential positioning technology is used to improve positioning accuracy by eliminating the common errors with the spatial correlation between the reference station and the user station. Pseudo-range differential is the most widely used as a positioning technology. The paper details the data processing algorithm of pseudo-range differential model, followed by the simulation analysis. The results show that compared to the single-point positioning, pseudo-range differential positioning of Compass has smaller error and higher precision. In addition, with the increasing of the two receives' distance, the error increases gradually. This is similar to GPS differential positioning theory.