This paper analyzes the performance degradation of ultrahigh frequency (UHF) band radio frequency identification (RFID) protocol due to reader-to-reader interference. First, we establish a modified discrete-time Markov chain model, including a statistical interference model. Then, using this model, we obtain quantitative results of the RFID performance, including tag identification speed (TIS) and query success rate (QSR). By varying the number of interfering readers and the radius of the protection area, the TIS and QSR are simulated and compared to analytical results. Our simulation results show good agreement with the analytical ones in all the simulation cases. When the radius of protection area is 100 m, TIS linearly decreases at the rate of 3.38 tags/sec/reader, while QSR decreases at the rate of 0.57%/reader. The minimal radius of protection area is 400 m when there are little effects of reader-to-reader interference on the performance of the RFID system.