To simulate the mechanical and fracture behaviors of cancellous bone in three anatomical directions and to develop an equivalent constitutive model. Microscale extended finite element method (XFEM) models of a cancellous specimen were developed with mechanical behaviors in three anatomical directions. An appropriate abaqus macroscale model replicated the behavior observed in the microscale models. The parameters were defined based on the intermediate bone material properties in the anatomical directions and assigned to an equivalent nonporous specimen of the same size. The equivalent model capability was analyzed by comparing the micro- and macromodels. The hysteresis graphs of the microscale model show that the modulus is the same in loading and unloading; similar to the metal plasticity models. The strength and failure strains in each anatomical direction are higher in compression than in tension. The microscale models exhibited an orthotropic behavior. Appropriate parameters of the cast iron plasticity model were chosen to generate macroscale models that are capable of replicating the observed microscale behavior of cancellous bone. Cancellous bone is an orthotropic material that can be simulated using a cast iron plasticity model. This model is capable of replicating the microscale behavior in finite element (FE) analysis simulations without the need for individual trabecula, leading to a reduction in computational resources without sacrificing model accuracy. Also, XFEM of cancellous bone compared to traditional finite element method proves to be a valuable tool to predict and model the fractures in the bone specimen.