Studies of entanglement in many-particle systems suggest that most quantum critical ground states have infinitely more entanglement than noncritical states. Standard algorithms for one-dimensional systems construct model states with limited entanglement, which are a worse approximation to quantum critical states than to others. We give a quantitative theory of previously observed scaling behavior resulting from finite entanglement at quantum criticality. Finite-entanglement scaling in one-dimensional systems is governed not by the scaling dimension of an operator but by the "central charge" of the critical point. An important ingredient is the universal distribution of density-matrix eigenvalues at a critical point [P. Calabrese and A. Lefevre, Phys. Rev. A 78, 032329 (2008)10.1103/PhysRevA.78.032329]. The parameter-free theory is checked against numerical scaling at several quantum critical points.
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