When a large automobile sheet metal part is formed in a draw die, the binder wrap is first calculated to predict the initial punch contact location for avoiding wrinkles and severe stretching of its thin blank sheet. Since the boundary of a pseudo blank in calculating a binder wrap by means of a geometrically nonlinear finite element method is unknown in advance, an iteration method is generally used. This paper presents an effective iteration method for correction of the pseudo blank in a binder wrap calculation. For the performance test, two examples are adopted. The calculated results for both examples show the good convergence which wasted solutions are obtained in the second iteration step.