This paper evaluates the ranges of application and physical limitations of lumped equivalent circuits and drift-diffusion models for the design of THz circuits. The predictions of these models have been compared with a Monte Carlo model, which was considered as a reference, and with measurements from doublers and triplers designed and fabricated by the Jet Propulsion Laboratory. Additionally, the usefulness of Schottky diodes as frequency multipliers above 3 THz is analyzed with the Monte Carlo model.