A practical procedure for determining soil parameters when analysing the deformation of peat by finite-element analysis (FEA) using the Cam Clay model is presented. FEA has not been frequently used to predict the deformation of peat soil, even though it can be a powerful prediction tool. The main reason for this is that a practical method for determining parameters has not been established. In this paper, the remarkable correlation between the soil parameters required for FEA using the Cam Clay model and the natural water content (wn) and ignition loss (Li) of peat and organic clay is presented. Then, based on this correlation, a flow chart for determining the soil parameters of peat and organic clay is proposed. Using this chart, it is possible to determine soil parameters directly from triaxial compression, oedometer and other detailed tests or to estimate them from wn, Li and other physical indexes. A trial embankment on peat soil in Hokkaido, Japan, was also created. FEA was performed on the trial embankment using the proposed procedure for determining the soil parameters. The results of the FEA corresponded to the measured settlement behaviour in the trial embankment with an accuracy in the range −4% to +8%. The FEA results also modelled the measured behaviour of pore water pressure and lateral and vertical displacements in the trial embankment very well.