Compression failure by fiber kinking limits the structural applications of fiber composites. Fiber kinking is especially prevalent in laminates with holes and cutouts. The latter behavior is characterized by strain localization in the matrix material and fiber rotations. To study fiber kinking on the level of the individual constituents, a homogenization of fiber composites is presented. It is based on a total Lagrangian formulation, making it independent of fiber rotations. It accounts for the microstructure of the composite, including fiber-matrix interfacial decohesion, and enables all types of material behavior of the constituents. The response of each constituent of the composite is modeled separately and the global response is obtained by an assembly of all contributions. The model is implemented as a user-defined material model (UMAT) in ABAQUS and used for multiscale modeling of notched unidirectional plies subjected to compression. The model performs well in agreement with a finite element model of an explicit discretization of the microstructure and literature results. The simulations predict the formation of a kink band in near 0-degree plies and show that the open-hole compression strength is sensitive to fiber-matrix interfacial decohesion. The present work suggests a convenient and computationally efficient tool for simulating the elastic-plastic behavior of fiber composites on the fiber-matrix level and predicting the compressive strength of laminates.