A numerical method is presented for the dynamic analysis of spur gears rotating with very high angular speeds. For an efficient computation each gear is assumed to consist of a rotating rigid disk and an elastic tooth having mass, and finite element formulations are used for the equations of motion of the tooth. The geometric constraint is imposed between the rigid disk and the elastic tooth to fix them, and contact condition is imposed between the meshing teeth of the gears. At each iteration of each time step the Lagrange multiplier and contact force are revised by using the constraint error vector, and then the whole equations of motion are time integrated with the given Lagrange multiplier and contact force. For the accurate solution the velocity and acceleration constraints as well as the displacement constraint are satisfied by the monotone reductions of the constraint error vectors. Computing procedures associated with the iterative schemes are explained and numerical simulations are conducted with the spur gears.