With the development of the CNC precision machining and the ultra-precision machining, machine tools error issue has became the most active research topics and concerned by more and more experts. In this paper, a rapid simulation software platform based on multi-body system theory and Matlab software for measurement and analysis geometric errors of CNC machine tool is presented, which includes the generation of simulated measurement data, data processing, error separation and error compensation etc. To verify the feasibility of the developed software, the sequential step diagonal vector measurement method has been analyzed. The experimental results show that after error compensation the machine performance is improved by 39%. It demonstrates that the sequential step diagonal vector measurement method could significantly improve the machine accuracy and the developed software platform is reliable. This platform is not only effective for step diagonal vector measurement method, but also can be applied to other measurements. Therefore, the software platform provides a fast, reliable and objective tool for machine error measurement and analysis.