Under the background of the new power system, the uncertainty of the new energy side and the load side further aggravates the frequency fluctuation of the power system, resulting in the continuous expansion of the system frequency regulation shortage. As a high-quality frequency modulation resource, the feasibility of energy storage participating in the frequency modulation market has been verified in a large number of engineering examples. However, the operating cost of energy storage is still high at this stage. In particular, energy storage participating in grid frequency modulation requires frequent switching of its charge and discharge state, which is more likely to accelerate battery aging, shorten its life cycle, and increase the cost of single frequency modulation. To this end, this paper proposes a control method for battery energy storage to participate in the frequency modulation market considering frequency modulation benefits and degradation costs. This method first predicts the frequency modulation signal in a short period based on historical frequency modulation instructions and then considers the energy storage frequency modulation benefits and degradation costs. The goal is to maximize the energy storage revenue in this short period, and finally optimize the energy storage output power in real time. The simulation results show that this method can ensure the high-performance index of energy storage frequency modulation and maximize the income of energy storage, which has a certain engineering application value.