[Objective] A calculation method for horizontal ecological protection compensation standards within the Yangtze River basin was evaluated and established in order to provide a scientific basis for promoting the protection of water resources, restoration of the water ecological environment, and sustainable development of the economy and society within the basin. [Methods] Firstly, the value of ecosystem services provided by water resources in the Yangtze River basin during 2010—2020 were calculated using water surface area and a modified equivalent factor table. Secondly, the freshwater and water pollution ecological footprints and carrying capacities across the basin regions were estimated to evaluate water resource overload status. Finally, using the watershed-wide water resource ecological overload coefficient as a baseline, the identities of the compensation individuals and objects in each region were defined. Based on the theory of public goods attributes and externalities, the theoretical amount and lower-limit value of ecological protection compensation in each region were estimated by combining the water resource ecosystem service value. [Results] ① From 2010 to 2020, the value of ecosystem services from water resources in the Yangtze River basin increased annually to 1.17×1012,1.18×1012, 1.19×1012 yuan. ② From 2010 and 2020, the freshwater ecological footprint of the Yangtze River basin first increased and then decreased, whereas the water pollution ecological footprint continued to increase. Based on the concept of ecological carrying capacity, the basin did not experience an overload during the study period. However, water supply-demand gaps were observed in regions such as Shanghai, Jiangsu City, and Henan Province. ③ During the study period, Qinghai, Xizang, Guangdong, Guangxi, Hunan, Jiangxi, and Fujian Province (autonomous regions) were consistent ecological protection compensation recipients, whereas Anhui, Yunnan, Zhejiang, Henan, Jiangsu Province, and Shanghai City were consistently compensation payers. The compensation amounts paid by the payer regions were within the scope of their general fiscal budgets and exhibited a year-on-year decline. [Conclusion] In the proposed calculation model, water ecology, water resources, and socio-economic development are closely integrated. It can provide a scientific and rational entry point and exemplar for water resource protection, water ecology maintenance, and the formulation of ecological compensation standards across the Yangtze River basin. It is expected to promote the continuous and in-depth development of ecological protection compensation work for first-level river basins in China.