Multicarrier Modulation (MCM) gains growing interests in high data rate communications for bath Hire and wireless environment. The channel estimation is a crucial aspect in MCM systems. A novel channel estimation algorithm [6] exploiting the channel information contained in the cyclic prefix outperforms the existing adaptive equalization scheme [2]. In this paper theoretical analysis is carried on the convergence of the adaptive channel estimation algorithm considering bath channel noise and decision error We prove that the algorithm is guaranteed to converge with proper loading. We also analyze several factors that affect the convergence rate such as data structure and loading function. Computer simulation shows that our analytical results are quite close to the simulation.