Vector tracking changes the classical structure of receivers. Combining signal tracking and navigation solution,vector tracking can realize powerful processing capabilities by the fusion technique of receiving channel and feedback correction. In this paper,we try to break through the complicated details of numerical analysis,consider the overall influencing factors of the residual in observed data,and use the intrinsic link between a conventional receiver and a vector receiver. A simple method for performance analysis of the vector tracking algorithm is proposed. Kalman filter has the same steady performance with the classic digital lock loop through the analysis of the relation between gain and band width. The theoretical analysis by the least squares model shows that the reduction of range error is the basis for the superior performance realized by vector tracking. Thus,the bounds of its performance enhancement under weak signal and highly dynamic conditions can be deduced. Simulation results verify the effectiveness of the analysis presented here. Vector tracking changes the classical structure of receivers. Combining signal tracking and navigation solution, vector tracking can realize powerful processing capabilities by the fusion technique of receiving channel and feedback correction. In this paper, we try to break through the complicated details of numerical analysis, consider the overall influencing factors of the residual in observed data, and use the intrinsic link between a conventional receiver and a vector receiver. A simple method for performance analysis of the vector tracking algorithm is proposed. Kalman filter has the same steady performance with the classic digital lock loop through the analysis of the relation between gain and band width. The theoretical analysis by the least squares model shows that the reduction of range error is the basis for the superior performance realized by vector tracking. Thus, the bounds of its performance enhancement under weak signal and highly dynamic conditions can be deduced. Simulatio n results verify the effectiveness of the analysis presented here.