Taking the advantages of high spectral resolution, high sensitivity and wide spectral coverage, space borne Fourier transform infrared spectrometer (FTS) plays more and more important role in atmospheric composition sounding. The combination of solar occultation and FTS technique improves the sensitivity of instrument. To achieve both high spectral resolution and high signal to noise ratio (SNR), reasonable allocation and optimization for instrument parameters are the foundation and difficulty. The solar occultation FTS (SOFTS) is a high spectral resolution (0.03 cm<sup>-1</sup>) FTS operating from 2.4 to 13.3 μm (750-4100cm<sup>-1</sup>), which will determine the altitude profile information of typical 10-100km for temperature, pressure, and the volume mixing ratios for several dozens of atmospheric compositions. As key performance of SOFTS, SNR is crucially important to high accuracy retrieval of atmospheric composition, which is required to be no less than 100:1 at the radiance of 5800K blackbody. Based on the study of various parameters and its interacting principle, according to interference theory and operation principle of time modulated FTS, a simulation model of FTS SNR has been built, which considers satellite orbit, spectral radiometric features of sun and atmospheric composition, optical system, interferometer and its control system, measurement duration, detector sensitivity, noise of detector and electronic system and so on. According to the testing results of SNR at the illuminating of 1000 blackbody, the on-orbit SNR performance of SOFTS is estimated, which can meet the mission requirement.