We employ a Monte Carlo ray-tracing technique to model light-extraction characteristics of light-emitting diodes. By relaxing restrictive assumptions on photon traversal history, our method improves upon available analytical models for estimating light-extraction efficiencies from bare LED chips, and enhances modeling capabilities by realistically treating the various processes which photons can encounter in a packaged LED. Our method is not only capable of calculating extraction efficiencies, but can also provide extensive statistical information on photon extraction processes, and predict LED spatial emission characteristics.