A method for predicting the remaining useful life of an engine (10) having components (18, 19, 22, 23) that are instrumented with sensors (50) that generate electronic data signals indicative of an operating condition of the component comprises identifying (52) one or more components and at least one failure mode for each component that limit an operating life of the components and engine (10). The method further comprises acquiring (62) and storing data relative to current operating conditions of the components associated with the identified failure mode; and, then determining (68) a remaining useful life of the component based on the data relative to current operating condition of the components, the data relative to historical data of the operating condition associated with the failure mode and a predicted failure mode rate.