The paper reviews an ab initio two-step procedure to determine thermodynamic properties of itinerant magnets. In the first step, the selfconsistent electronic structure of a system is calculated using the tight-binding linear muffin-tin orbital method combined with Green function techniques. In the second step, the parameters of the effective classical Heisenberg Hamiltonian are determined using the magnetic force theorem and they are employed in subsequent evaluation of magnon spectra, the spin-wave stiffness constants and the Curie/Nel temperatures. Applicability of the developed scheme is illustrated by investigations of selected properties of 3d metals Fe, Co, and Ni, diluted magnetic semiconductors (Ga,Mn)As, and 4f metals Gd and Eu.1. Introduction Practical implementation of density-functional formalism led to excellent parameterfree description of ground-state properties of metallic magnets, including traditional bulk metals and ordered alloys as well as systems without the perfect three-dimensional periodicity (disordered alloys, surfaces, thin films). On the other hand, an accurate quantitative treatment of excited states and finitetemperature properties of these systems remains a challenge for ab initio theory of solids. The complexity of the problem calls for additional assumptions and approximations the validity of which has to be checked in each particular case. The purpose of this article is to review a recently developed first-principles scheme of this kind [1][2][3]. A brief presentation of the formalism and of the underlying physical ideas is accompanied by examples of applications to various bulk systems including transition metals, diluted magnetic semiconductors, and rare-earth metals. Applications to thin magnetic films can be found elsewhere [2,4].