Based on the theory of gas-liquid two-phase flow, the finite element method was used to simulate rainfall infiltration in loam soil with different degrees of saturation to investigate the effects of the initial degree of saturation on rainfall infiltration. Numerical results show that the pore air pressure increases gradually in the initial stage of rainfall infiltration; then, the infiltration rate decreases to a stable value because of the jacking force caused by pore air. The stable infiltration rate is mainly determined by the matrix suction and permeability characteristics of soil, varying with the initial degree of saturation. With the variation of the initial degree of saturation, the infiltration rate reaches its maximum or minimum values. The maximum infiltration rate usually appears in the stage of residual or full saturation, while the minimum infiltration rate occurs in the unsaturated stage, depending on soil unsaturated characteristics. Affected by the matrix suction of soil and the relative permeability of water and air, the infiltration rate gradually decreases with the increase of the degree of saturation at first. When the infiltration rate drops to the minimum, it starts to rise with the increase of the degree of saturation. According to the results of numerical simulation, a formula is proposed for calculation of the relatively stable infiltration rate for different initial degrees of saturation.