When compared with conventional replacement reinforcement methods, the method of replacement using a local reinforcement with an unsupported roof has the advantages of shortening the reinforcement cycle and reducing material loss, and many scholars have carried out useful explorations thereof. At present, the formula for the bearing capacity of reinforcement by replacing concrete in the Code does not consider the effect of stress hysteresis on the parts of the reinforcement; so when the initial stress level is greater than 0.4, the Code’s strength utilization coefficient of 0.8 for the new concrete in the replaced area is on the side of insecurity. In this study, we are trying to improve and supplement the formula in the Code through the following work. Firstly, 18 groups of shear wall models were constructed using a VFEAP finite element analysis program to analyze the bearing performances of the shear walls after the replacement. The results showed that the replacement concrete strength, the initial stress level and the size of the replaced area had a significant influence on the bearing capacity of the shear wall after the replacement. Secondly, utilizing the replacement concrete strength, the initial stress level and the size of the replacement area as key parameters, then introducing the strength improvement coefficient considering the constraints of the stirrups, the modified strength utilization coefficient of new concrete in the replaced area was formulated. Finally, based on the modified strength utilization coefficient, the replacement bearing capacity formulas for the one-batch, two-batch, and three-batch replacements were derived, and an N-batch replacement bearing capacity formula was regressed and fitted on the basis of these equations, which are less discrete and more secure than the Code’s formula.