Transformer failures in a power system very often lead to forced outages, blackouts and revenue losses. The power system can be run smoothly if the remnant life of the transformers is predicted accurately before such devices fail to perform. The remnant life estimation gives a flexible decision on replacement or relocation of power transformers. These devices are the connecting links between transmission and distribution end. The lifetime of the power transformer is mainly associated to the insulation system condition. In the present work experimental data obtained by conducting dissolve gas analysis, moisture content, breakdown voltage, interfacial tension, furan compounds and dielectric dissipation factor or tan delta on the various power transformers of Himachal State Electricity Board has been utilized to develop the proposed remnant life estimation model. The proposed Fuzzy logic model utilizes the MATLAB graphical user interface tool to interpret the life expectancy of the power transformers very accurately.