A method of calibrating a simulation model of a photolithography process. The method includes the steps of defining a set of input data; defining a simulation model having model parameters which affect the simulation result produced by the simulation model; performing a first stage calibration process in which the model parameters and alignment parameters are adjusted such that the simulation result is within a first predefined error tolerance; and performing a second stage calibration process in which the alignment parameters are fixed and the model parameters are adjusted such that the simulation result is within a second predefined error tolerance.