Dynamic as well as static and geometric design parameters such as inertia, tooth profile, backlash and clearance can be directly considered via multi-body dynamic analysis along with contact analysis. However, it is time consuming to use finite elements for the consideration of the tooth flexibility in the multi-body dynamic analysis of gears. A computationally efficient procedure, so called, Gear Stiffness Module, is suggested to resolve this calculation time issue. The characteristics of gear tooth compliance are discussed and rotational stiffness element concept for the Gear Stiffness Module is presented. Transmission error analyses for a spur gear system are carried out to validate the reliability and efficiency of the module. Compared with the finite element model, the Gear Stiffness Module yields considerably similar results and takes only 3% of calculation time.