A simple algorithm based on the transformation equations of homogeneous deformation allows application of computer-graphic software for estimation of strain and restoration of shape of distorted fossils in a single operation. This paper gives a computer-aided digital method for the estimation of strain in situations where a single fossil, or a set of fossils, is found embedded in rocks. Because the digital method deciphers reciprocal strain ellipse by removing the effect of tectonic deformation, it is also useful in precise taxonomic identification. Several natural examples of trilobites and brachiopods are tested by the digital method, as well as by other conventional methods of strain analysis. The digital method is easy to use, rapid, and accurate in comparison to other existing methods of strain analysis and retrodeformation.