IEEE 802.11 protocol supports adaptive rate mechanism, which selects the transmission rate according to the condition of the wireless channel, to enhance the system performance. Thus, research of multi‐rate IEEE 802.11 medium access control (MAC) performance has become one of the hot research topics. In this paper, we study the performance of multi‐rate IEEE 802.11 MAC over a Gaussian channel. An accurate analytical model is presented to compute the system saturation throughput. We validate our model in both single‐rate and multi‐rate networks through various simulations. The results show that our model is accurate and channel error has a significant impact on system performance. In addition, our numerical results show that the performance of single‐rate IEEE 802.11 DCF with basic access method is better than that with RTS/CTS mechanism in a high‐rate and high‐load network and vice versa. In a multi‐rate network, the performance of IEEE 802.11 DCF with RTS/CTS mechanism is better than that with basic access method in a congested and error‐prone wireless environment. Copyright © 2008 John Wiley & Sons, Ltd.