Incoherent digital holography (IDH) enables passive 3D imaging through the self-interference of incoherent light. IDH imaging properties are dictated by the numerical aperture and optical layout in a complex manner [Opt. Express27, 33634 (2019)OPEXFF1094-408710.1364/OE.27.033634]. We develop an IDH simulation model to provide insight into its basic operation and imaging properties. The simulation is based on the scalar diffraction theory. Incoherent irradiance and self-interference holograms are numerically represented by the intensity-based summation of each propagation through finite aperture optics from independent point sources. By comparing numerical and experimental results, the applicability, accuracy, and limitation of the simulation are discussed. The developed simulation would be useful in optimizing the IDH setup.