[1] Nonlinear instability and refraction by ocean currents are both important mechanisms that go beyond the Rayleigh approximation and may be responsible for the formation of freak waves. In this paper, we quantitatively study nonlinear effects on the evolution of surface gravity waves on the ocean, to explore systematically the effects of various input parameters on the probability of freak wave formation. The fourth-order current-modified nonlinear Schrödinger equation (CNLS 4 ) is employed to describe the wave evolution. By solving CNLS 4 numerically, we are able to obtain quantitative predictions for the wave height distribution as a function of key environmental conditions such as average steepness, angular spread, and frequency spread of the local sea state. Additionally, we explore the spatial dependence of the wave height distribution, associated with the buildup of nonlinear development.