Abstract: The basic method for determining foundation bearing capacity is briefly introduced in this paper.The reliability of the method is dependent on the correct choice of ratio Ed/ E0. It is also analysed that Ed/ E0 is defined by the residual and elastic deformation of soil. Based on the laboratory test data the charts of Ed/ E0 are presented according to the soil types and their conditions. Based on the Ed/E0 charts author has revised the formula for calculating the modulus of deformation and bearing capacity of foundation which has been supported by engineering practice.