A calibrated TEC of Abel inversion method is usually applied in the inversion of ionospheric occultation data, which could cause error for the spherical asymmetry of the real ionosphere. This paper studies a method, TEC compensated inversion method. Combined with background field, this method removes the effect of TEC from the horizontal change of the electron density to improve the applicability of spherical symmetry and inversion accuracy. Then the method is applied in the inversion of simulated data. The result of simulated data inversion validates that TEC compensated inversion method decreases the inversion errors greatly, compared with Abel inversion method. Through the study on background fields obtained by different ways with TEC compensated method, the more close between background and real field, the better inversion result is obtained.