In this paper, we present an update to the models used to calculate the remaining life of transformer paper insulation. A drawback to the current IEEE method is that it does not take into account the availability of water and oxygen on the life expectancy of Kraft paper insulation. We therefore set out to test an algorithm which does take these into account. For our investigation, we loaded three test transformers and ran them to near their end of life. Kinetic equations were applied to model the fall in the degree of polymerization of paper. Our model showed better agreement with the test results than that given from using the IEEE standard. The IEEE standard gives life expectancy for Kraft paper being aged in minimal oxygen under dry conditions, which is not necessarily representative of an old transformer. Wet paper and using high levels of oxygen can age nearly 40 times faster. The IEEE method needs to take the synergistic effect of water and oxygen on increasing the rate of paper aging into account.