A shoe wear indicator device for use in combination with athletic shoes for monitoring and reporting qualitative wear and tear on athletic shoes. The shoe wear indicator device includes an insole housing a power supply/user interface unit, a microchip, a sensor unit, and an interface cable. The shoe wear indicator device is used by: (1) a user inserting the device into an athletic shoe; (2) the user exercising or playing various sports; (3) the user removing the device from the shoe; (4) the user connecting the device to a terminal; the user downloading shoe usage data; and (5) the user replacing the shoe if the useful life of the shoe has been exhausted.