The small strain theory underestimates the self-bearing capacity of rock masses, especially for a soft rock tunnel under high geostress. To perform an efficient and accurate calculation and provide a reference for the stiffness design of a tunnel, the finite strain solution for a circular tunnel in Mohr–Coulomb strain-softening rock masses with a non-associated flow rule was derived as three sets of differential equations under the Lagrangian coordinate, which are in the residue region, the softening region, and the elastic region, respectively. Based on the bisection method, an iteration procedure for solving the finite strain solution was proposed to approximate the boundary condition at infinity, the values of two adjacent boundaries, and the initial values on the excavation boundary. This numerical procedure was verified by comparing with self-similar solutions, recursive solutions, and FLAC simulation results. In the calculation example, the relative error on boundaries can be decreased to less than 10−8 after only 10 times iteration and the time for each calculation is less than 15 s. Applying this procedure on the sensibility analysis and stiffness reliability design for the Zhongyi tunnel, a support stiffness of 4.3 MPa/m is recommended to guarantee a tunnel displacement lower than 0.5 m.