This paper proposed a transient numerical model for a coaxial borehole heat exchanger, which considered the impact of borehole specific heat capacity. The fluid vertical temperature distribution inside the coaxial borehole heat exchanger (BHE) had been predicted based on MATLAB and compared with other transient models. Validated by measured data from a thermal response test, the built model agreed better than other models, especially in short times, with a relative error of 3.63% in 2 hours. Then, the quantitative influences of borehole specific heat capacity and other parameters on thermal performance of borehole heat exchangers were specified.