This paper describes an industrial structure of a circulatory economy and builds a systematic dynamic model and its equation system for resources recycling utilization based on Compartment Model Theory. A circulation multiplier and its computational formula are defined to measure the efficiency of resources recycling utilization. The simulated results indicate that the resources recycling utilization can not only realize the amount accumulation of natural resources and improve the resources recycling efficiency, but can minimize discharges into the natural environment by using industrial innovation to adjust each compartment parameter in the circulatory economy. The compartmental model and simulations of the circulatory economy can be used to test or inspect the efficiency of material accumulation and the effects of environment discharges in resources recycling utilization in real economic systems like national economy, regional economy, industrial eco-parks, And so forth.