After having identified a short list of candidate indicators for assessing the impact of the European Innovation Partnership on Active and Healthy Ageing (EIP on AHA) in the first and second reports on outcome indicators for MAFEIP, the next step in this project was to develop a quantitative approach that could be suited to establishing a link between candidate indicators and the EIP on AHA objectives. This report therefore conceptualises a model for estimating the impact of the Partnership's activities on its targets for health and sustainability of health and care system using the outcome indicators that were previously identified. In accordance with the EIP on AHA headline target of increasing the average healthy life expectancy of European citizens by two years by 2020, we took the methods to calculate Healthy Life Years (HLY) as a starting point, but adapted them to better accommodate the needs of MAFEIP. The rationale for this adaptation was to ensure the resulting model can adequately estimate the health impacts achieved by EIP on AHA commitments, and also to utilise data on indicators that are most frequently reported across EIP on AHA participants. The resulting model is based on a Markov process with three generic health states ('baseline health', 'deteriorated health' and 'death'), which can draw upon data from primary and secondary outcome indicators across populations, interventions, commitments and geographic domains. We discuss how the model's flexibility that allows it to be applied to different contexts could be enhanced further through the optional inclusion of additional health states or extensions for incorporating additional secondary indicators. We also discuss how to use the model for estimating the impact of activities delivered within the EIP on AHA on the sustainability of health and care systems in terms of the incremental impact of the interventions on health and care expenditure. We propose that the model should be implemented as a web-based monitoring tool to enable stakeholders within commitments to independently assess the impact of their respective interventions on health and sustainability of health and care systems, with the support and guidance of IPTS.