A novel method for designing binary computer-generated hologram (BCGH) is presented. The principle of synthesizing BCGH by iterative search algorithm is analyzed. A set of parameters are established to evaluate a computer holography algorithm. The reconstruction quality and diffraction effciency of several BCGHs are analyzed in terms of computer analogue. The results show that the phase BCGH synthesized by iterative search alsorithm results in substantially well reconstruction quality and high reconsttuction efficiencies, it's a better iterative algorithm for designing BCGH.