Performance-based seismic design involves how to confirm inelastic displacement demand of structures under earthquake in concise and reasonable way. Two shortages need to improve in analyzing the elastic-plastic seismic responses of structures if the traditional capacity methods are employed. The shortages are the uncertainty of equivalent high damp of elastic-plastic structures and the limitation of the higher order vibration mode effect being not taken into account. To solve these problems, the authors propose the concept and analyzing process of improved capacity spectrum method based on modal pushover analysis and the elastic seismic responses spectrum modified by strength reduction coefficient and ductile coefficient. The example of analyzing the performance of frame structure is shown which may be a simple and effective method used in engineering. This method has application potential in Performance-based seismic design.