The current satellite clock products are computed using the ionosphere-free phase (L1/L2) and code (P1/P2) observations. Thus, if users conduct undifferenced positioning using these clock products together with C1 and P2 observations, the differential code bias (DCB) (C1–P1) should be properly compensated. The influence of DCB (C1–P1) on the undifferenced ambiguity solutions is investigated. Based on the investigation, we propose a new DCB (C1–P1) estimation method. Using it, the satellite DCB (C1–P1) can be computed. A 30-day (DOY 205–234, 2012) dual-frequency GPS data set is processed to estimate the DCB (C1–P1). Comparing the estimated results with that of IGS DCB products, the accuracy is better than 0.13 m. The performances of DCB (C1–P1) in the codebased single-point positioning, precise point positioning (PPP) convergence and wide-lane uncalibrated phase delay (UPD) estimation are investigated using the estimated DCB (C1–P1). The results of the code-based single-point positioning show that the influence of DCB (C1–P1) on the up direction is more evident than on the horizontal directions. The accuracy is improved by 50 % and reaches to decimeter level with DCB (C1–P1) application. The performance of DCB (C1–P1) in PPP shows that it can accelerate PPP convergence through improving the accuracy of the code observation. The computed UPD values show that influence of DCB (C1–P1) on UPD of each satellite is different, and some values are larger than 0.3 cycles.