To accurately predict quality loss of high reliability and long‐life product in service, a dynamic quality characteristics model is established based on linear degeneration and random error. According to this model, the expectation and variance of dynamic quality characteristics can be figured out. Moreover, assuming that the quality characteristics follow the normal distribution at the initial stage, the expectation of quality loss and the life distribution of dynamic quality characteristics follow three types are derived, such as L‐type (Larger is better), S‐type (Smaller is better), and N‐type (Nominal is better). According to the discount theory of quality loss, the present value model of dynamic quality loss based on the life is derived by combining life and the present value of dynamic quality loss. Then, this model is used to evaluate the quality loss of a GaAs laser and the rationality of the model is analyzed.