Abstract Increasing global demand for a sustainable society is driving the development of multi-storey light-frame wood structures, yet their complex structural components make detailed finite element modelling (FEM) impractical. The structural response of these buildings cannot typically be accurately captured with traditional simplified computational methods that rely on the use of parameter-based spring hysteretic properties or mathematical derivation. This paper proposes a powerful simplified nonlinear FEM procedure capable of accurately and efficiently capturing the responses of single-storey and multi-storey light-frame wood shear wall structures with respect to lateral displacement against base shear. The proposed procedure involves the separation of flexural and shear deformations from the total deformation resulting from the detailed model pushover analysis. The nonlinear curves of these deformation components against base shear are used to develop the properties of simplified axial and shear link models based on an approach equating external and internal work. To demonstrate the accuracy of the simplified FEM in conducting pushover analysis for structures with different structural details, 6 single-storey shear walls and 4 four-storey shear walls were modelled using this nonlinear simplified FEM analysis procedure. Compared with detailed FEM procedure, the developed simplified FEM method accurately captured the pushover analysis results with acceptable discrepancies and significantly less computational time. This proposed simplified procedure has the potential for wide applicability in structural design and analysis through the establishment of a simplified model database and the embedment of this database into any commonly used commercial FEM software.