Analytical method to analyze the effect of tolerance on the modal characteristic of multi-body systems in dynamic equilibrium position is suggested in this paper. Monte-Carlo method is conventionally employed to perform the tolerance analysis. However, Monte-Carlo method spends too much time for analysis and has a greater or less accuracy depending on sample condition. To resolve these problems, an analytical method is suggested in this paper. Sensitivity equations for damped natural frequencies and the transfer function are derived at the dynamic equilibrium position. By employing the sensitivity information of mass, damping and stiffness matrices, the sensitivities of damped natural frequencies and the transfer function can be calculated.