In this study, the simulation program is developed where the tooth profile error in internal gear shaping is calculated considering several factors which affect it. This factors are the circular feed of the pinion cutter, the interference by the geometric conditions of the cutter and the internal gear, the deviation from the theoretical involute profile of the cutter and the eccentricity of the cutter and the internal gear. With this program, the effects are investigated which the geometric conditions and the cutting conditions in internal gear shaping have on the tooth profile error of the internal gear. The condition for the minimization of it is derived and then the results of simulation are adequately verified by measurements of internal gears cut by a pinion cutter.