Chord modulus method is used to establish chord modulus function considering the basic physical properties of loess and the combined effects of additional stress. Layer-wise summation method is applied to calculate the deformation of the loess foundation. Good prediction results are obtained in the engineering practice of the Guanzhong loess area in Shaanxi Province. However, a different result is obtained when analyzing the settlement of foundations in other loess areas, such as Lanzhou. The contradicting results could be due to the neglect of the structural characteristics of loess under natural conditions. Using chord modulus method, this study evaluates the relationship between the structural index of loess and the compressive modulus, void ratio, and water content. Four soil samples were collected in the urban area of Xi'an, and a large amount of load test data was employed in the analysis. The results validate the theory of structural parameters in the settlement calculation of foundation settlement.