In order to test the static and dynamic performance of a Global Positioning System (GPS) receiver, a GPS signal simulator is required to generate real satellite signals in various environments. The software simulator is widely used because of the advantages of being flexible and reprogrammable. Therefore, a digital intermediate frequency GPS signal software simulator which implemented using MATLAB software is proposed. It is a method to calculate the satellite ephemeris parameters by using the anchor point, satellite elevation angle and azimuth angle, and to achieve navigation information transmission delay by modifying the C/A code frequency based on analyzing the positional relationship between the satellite and the receiver. The simulation results show that the simulator is correct and effective. When the receiver is stationary and the satellite is moving, the receiver positioning error is less than 1 m.