In this paper, we study the luminosity function and formation rate of short gamma-ray bursts (sGRBs). Firstly, we derive the correlation using 16 sGRBs with redshift measurements and determine the pseudo redshifts of 284 Fermi sGRBs. Then, we use the Lynden-Bell c method to study the luminosity function and formation rate of sGRBs without any assumptions. A strong evolution of luminosity is found. After removing this evolution, the luminosity function is $ \Psi (L) \propto L_0 ^ {- 0.29 \pm 0.01} \psi (L) \propto L_0 ^ {- 1.07 \pm 0.01} $ for bright sGRBs, with the break point erg s. We also find that the formation rate decreases rapidly at , which is different with previous works. The local formation rate of sGRBs is 7.53 events Gpc yr. Considering the beaming effect, the local formation rate of sGRBs including off-axis sGRBs is events Gpc yr. We also estimate that the event rate of sGRBs detected by the advanced LIGO and Virgo is events yr for NS-NS binary.

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