Forming limit curves are used as a parameter in finite element analysis to control the material's level of formability. In this research, forming limit diagram (FLD) of SS304L sheet was obtained by ABAQUSfinite element software. In practice, the experimental determination of a forming limit curve is a very time-consuming procedure which requires special and expensive equipment. Forming limit diagram (FLD) is derived by the simulation of Erichsen test (out-of-plane stretching test) using hemispherical punch. There are few studies on the prediction of necking time, which is obtained by the application of Pepelnjak algorithm and ductile fracture criterion. In order for the validation, the numerical result of forming limit diagram (FLD) was compared with the experimental and analytical results and a good correlation was observed. Forming limit stress diagram (FLSD) and MSFLD were determined by plotting the principal in-plane stress and FLD corresponding to the onset of necking localization, respectively. Effect of the thickness of the sheet on forming limit curves was investigated and the results showed that increased thickness of the sheet led to raised level of the FLD and MSFLD; but, FLSD did not change considerably.