A method for performing model predictive maintenance (MPM) of building equipment includes obtaining a first objective function that defines a cost of operating the building equipment and at least one of replacing the building equipment or performing maintenance on the building equipment as a function of operating decisions and at least one of replacement decisions or maintenance decisions for the building equipment for multiple short-term time steps within a short-term horizon. The method also includes performing a first optimization of the first objective function to generate a short-term maintenance and replacement schedule for the building equipment over a duration of the short-term horizon. The method also includes using a result of the first optimization to perform a second optimization of a second objective function to generate a long-term maintenance and replacement schedule for the building equipment over a duration of a long-term horizon.