AbstractOne major problem encountered when using the finite element method to simulate the load–deformation behaviour of an elasto‐plastic soil mass is that the theoretical collapse load is generally exceeded, and in some cases the numerical solution fails to exhibit a collapse load. A mixed variational principle is used as the basis for developing the governing equations of deformation and the results from this are compared with those obtained from the use of the virtual power equation. The former is found to give improved results and is generalized to include description of finite deformation. An Eulerian frame of reference is used. The method of approximating configuration changes in the numerical solution procedure is found to determine the shape of the load–deformation curve. Finally, a simple method of accounting for anisotropy of yield is pres