A numerical procedure for the geometrical and material nonlinear analysis of concrete beams prestressed with external tendons is described, where the effects of external prestressing are treated as the equivalent loads applied on the concrete beams. The geometrical nonlinearity is considered not only the eccentricity variations of external tendons (second-order effects) but also the large displacement effects of the structure. The numerical method can predict the nonlinear response of externally prestressed concrete beams throughout the entire loading history with considerable accuracy. An evaluation of second-order effects of externally prestressed concrete beams is carried out using the proposed analysis. The analysis shows that the second-order effects have significant influence on the response characteristics of externally prestressed concrete beams. They lead to inferior ultimate load and strength capacities and a lower ultimate stress increase in tendons. Based on the current analysis, it is recommended that, for simply-supported externally prestressed beams with straight horizontal tendons, one deviator at midspan instead of two deviators at one-third span be furnished to minimize these effects.