An improved method for predicting the health of a power transmission and an apparatus for practicing the same are provided. The method includes: monitoring a total number of converged shifts after a first shift has converged; determining if the total number of converged shifts is greater then a calibrated number of completed converged shifts; if yes, determining an initial clutch volume, an initial free running clearance, a free running clearance, and a free running clearance per face and monitoring a change in free running clearance per face; determining if either the free running clearance per face is greater than a calibrated free running clearance per friction surface for failure or if the change in free running clearance per face is greater than a calibrated change in free running clearance per friction surface for failure; if yes, activating a service indicator configured to warn vehicle occupants that transmission service is required.