In wireless network design and positioning it is essential to use radio propagation models for the applied frequency and environment. There are many propagation models available for both indoor and outdoor environments; however, they are not applicable for 433 MHz ISM frequency, which is perfectly suitable for smart metering and sensor networking applications.During our work, we gathered the most common propagation models available in scientific literature, broke them down to components and analyzed their behavior. Based on our research and measurements, a method was developed to create a propagation model for both indoor and outdoor environment optimized for 433 MHz frequency.The possible application areas of the proposed models: smart metering, sensor networks, positioning.