<p>Siheyuan, a traditional Chinese courtyard dwelling, is the cultural heritage where Fengshui, the ancient Chinese superstitious geomancy, is embedded. This paper presents a novel parametric approach to interpret the Fengshui theory Li Qi computationally and develop its principles into an algorithm. We examined Fengshui Li Qi concepts like ‘eight trigrams’, ‘seven colours’, ‘five elements’, and ‘nine starts’ to develop computational rules and apply them to Siheyuan houses’ fortune status based on room orientation, size ratio, and dimensions. A Grasshopper script to turn the rules into an algorithm is created. Comparing computing results with other studies confirms that the algorithm captured Fengshui Li Qi principles. The algorithm proposes a parametric tool for examining Fengshui application in Siheyuan historical precedents from an ancient Beijing map and measuring extant building surveys. The findings showed that most Siheyuan houses were auspicious despite other forces, demonstrating the impact of Fengshui culture on ancient Chinese society.</p>