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Failure Probability Model

Every component is scored with an S-curve failure probability model that drives the warranty analyzer and surfaces hidden risk costs.

How the Probability Model Works

Instead of treating every component as a binary "alive or dead," the engine uses a logistic S-curve to assign each component an annual failure probability based on how much of its useful life has been used.

  • Logistic S-curve: ~3% baseline failure, ~50% probability at 85% of useful life, ~95% past lifespan
  • Annual risk cost: replacement cost × failure probability × 50% realization factor
  • Powers the warranty analyzer's expected payout math
  • Surfaces hidden risk costs for components nearing end of life

Why This Matters

A 17-year-old roof on a 20-year useful life is not the same risk as a brand-new one. Most reserve calculators ignore this. The probability model lets you see, in dollars, what each aging component is silently costing you in expected risk.

  • Make warranty decisions on math, not gut feel
  • Quantify the dollar value of replacing aging components proactively
  • See which components carry hidden risk dollars year over year

Sample Output

See what this feature calculates for you.

Failure Probability Model
Roof — % of life used 85%
Annual failure probability 50%
Annual risk cost $3,000/yr
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