In this study, a machining error estimation system far vertical lathes with structural deformation and geometric errors, is realized based on the virtual manufacturing technologies. The positional and directional errors of cutting tool are determined by considering the geometric errors and dimensions of machine components and by introducing the equilibrium condition between the cutting force and structural deformation. Especially, the machining errors of vertical lathes are estimated by using the prescribed cutting test(JIS B 6331). The system can be implemented to evaluate the machining accuracies of vertical lathes at the design process and to design the high precision vertical lathes.