The channel capacity of fadingchannel becomes less than that of Gaussian noise channel. Moreover, the channel capacity of system with modulated signal is expected to be much less than that of system with nonmodulated signal. It is very difficult to evaluate the capacity in fading channel with modulated signal. The channel capacity for M-ary PSK signal has already been derived in Gaussian noise channel but it is very complicate form composed of complex integral formula. In this paper, we have derived the simple form of channel capacity with M-ary PSK signal by using the average symbol error rate. And we also evaluate the capacity in Rician and m-distribution fading channels as well as Gaussian noise channel. We have verified that the channel capacity obtained are almost the same as in other literature. As a results, we show that the channel capacity of M-art PSK signal increases to converge to the number of bits per symbol (log M) as signal to-noise power ratio increases.