It is important to determine the shear resistance of the cold-formed steel stud composite wall which is a main component of the light-weight steel housing. A finite element model (FEM) was introduced in this paper to simulate the shear resistance of this type of composite walls. The material and geometric nonlinear were considered, and the single side gypsum walls and columns are simulated by shell elements, respectively while the screws and frame are modeled by coupling method. The results obtained from FEM were verified against the others’ experimental results. Parametric study is carried out with materials of wall panel, strength of steel members, stud spacing, wall height, and screw spacing to analyze the shear-carrying capacity of the walls. A simplified formula for shear resistance of the composite wall was proposed based on parametric analysis.