There’s no fixed rule for how much to spend on an engagement ring, but understanding what influences the cost—such as diamond quality, carat weight, and ring settings—can help you choose something that fits your budget.
If you’re planning to propose, figuring out your ring budget is a practical first step. You’re not expected to know this instinctively, especially since advice on ring spending has varied over the years.
Keep in mind that an engagement ring doesn’t have to put you in debt to bring joy to you and your partner. Several factors go into the purchase, from setting a budget and learning about diamond quality (the “four Cs”) to finding a stone that suits both your finances and your partner’s taste.
“Price doesn’t always reflect beauty or quality. Two rings might look similar on paper but feel completely different once you appreciate their design, cut, and craftsmanship,” says Olivia Landau, a fourth-generation jeweler and founder of The Clear Cut. “Working with a trusted expert lets you focus on what matters most to you—whether that’s brilliance, proportion, or personal style—while staying within budget. A thoughtfully designed custom ring often offers great value and results in something timeless, personal, and built to last.”
Here are 10 tips to help you stay grounded while searching for the perfect engagement ring.
Understanding the Average Cost of an Engagement Ring
If you’re unsure where to start, looking at average spending can provide a helpful benchmark. Engagement rings are a significant investment, with the national average around $5,200, according to The Knot’s 2024 Jewelry & Engagement survey. However, this figure doesn’t account for specifics like gemstone type, metal, carat weight, or setting. For example, a natural two-carat diamond with high clarity and color typically starts around $10,000, while a lab-grown stone of similar size may cost about a third of that. Choosing a well-known designer can mean higher markups, whereas sourcing from a diamond district or vintage dealer often leads to savings.
Is the Three-Month Salary Rule Still Relevant?
A common guideline in the past was to spend two to three months’ salary on an engagement ring. This idea originated during the Great Depression as a marketing campaign by De Beers, which promoted diamonds as the ultimate symbol of love and encouraged spending one month’s pay (later increased to three) on a ring.
Today, following this rule could mean spending $25,000 or more for someone earning a six-figure salary. But this approach is now considered outdated. “Today’s couples are far more thoughtful—and realistic,” notes Landau. “People set budgets based on financial comfort, shared values, and long-term goals, not old formulas. There’s no single ‘right’ amount to spend.” She adds, “The new standard is intention: choosing something meaningful, well-made, and aligned with your life—not a marketing rule from another era. Some couples spend more than the old rule suggests, and some spend less, depending on what matters to them and their future.”
Set an Engagement Ring Budget, Just Like a Wedding Budget
You don’t need to go into debt or borrow heavily for an engagement ring. The ring should be special, not a financial burden. Start by reviewing your and your partner’s financial situation: consider your income, savings, and how much you’d ideally like to spend. Then, set a clear budget. If you’re unsureIf you’re not great with budgeting (don’t worry, you’re not alone), open a spreadsheet and create a solid plan to follow while shopping for an engagement ring. Remember to include additional costs like jewelry insurance in your total.
In short, don’t empty your savings for a ring. If you can’t afford the ring your partner wants, look into payment plans. Check if your jeweler offers in-house financing, or consider using a credit card. While there are many payment options available, be responsible by checking interest rates and setting a realistic timeline to pay it off. If you know you struggle with making payments on time, consider this a last resort.
Consult a Reputable Jeweler About the “Four Cs”
Not everyone has a trusted jeweler or a family heirloom ring ready for a proposal. Start by visiting local jewelry stores or asking for recommendations from family and friends. You don’t have to buy or design your ring there, but it’s a good starting point. “It’s important to work with someone who is transparent and educational, so you understand why something costs what it does,” says Landau. “A well-designed ring should feel thoughtful and personal, not stressful or random.”
Once you have an idea of where to buy your ring, think about what you want. Explore different metals like yellow gold or platinum, various band shapes and styles, and both natural and lab-grown stones. If your partner loves diamonds, ask your jeweler about the “Four Cs”: cut, color, clarity, and carat weight. These factors determine a stone’s overall look and value. For example, a stone with higher clarity may have no visible inclusions, while one with lower color might have a warmer tint. Decide which “Cs” matter most to you, as this affects the price. Also, make sure any stones you consider are GIA graded for verified value.
Jewelers can help you balance the “Four Cs” to find a stone within your budget. Carat weight often significantly impacts price. For instance, a stone just under three carats—around 2.8 or 2.9—can cost much less than a full three-carat diamond.
Consider Different Metals
Just like diamonds, the metal of the ring affects its price. Platinum is the strongest and most durable, often costing more due to its quality. You might prefer the look of yellow gold, but its price fluctuates with the market, so check current rates. “With the high cost of gold, metal choice definitely plays a larger part in price,” notes Landau. “Also, with chunky gold settings becoming very popular these days, the heavier the metal, the more expensive the ring will be.”
Compare Lab-Grown and Natural Diamond Prices
If you want a larger stone on a budget, friends might suggest lab-grown diamonds. These stones are nearly identical to natural diamonds but are created in a lab at a much lower cost. While lab-grown diamonds have less resale value, you can often find higher cuts and clarities for a better price. Choosing between natural and lab-grown diamonds comes down to personal preference regarding origin and value. If you prefer a natural diamond, expect to pay about four times more than for a lab-grown stone.
Don’t Be Afraid to…Compare Prices
Don’t settle on the first ring you see—or even the eighth. Explore different wedding ring designs at various price points, and if you have a specific style in mind, get quotes from multiple jewelers. Well-known brands often come with a higher markup, so visiting a jeweler in your local diamond district can frequently offer better value for the quality. There’s no shame in learning about fine jewelry, so why hesitate to research pricing? Even if you know the national average spent on engagement rings, that doesn’t mean it has to be your budget. Decide on a reasonable price range for the design you like, and move forward with confidence.
Shop Jewelry Sales
You don’t have to pay full price for an engagement ring. Many jewelry brands run sales during the year, especially around Black Friday and other major holidays. Do some research to see which jewelers typically offer promotions at certain times, or simply ask your sales associate if any sales are coming up. If you’re working directly with a diamond dealer, you may even be able to negotiate the price. After all, that beautiful ring will look just as stunning with a 25% discount.
Consider Alternative Gemstones
Remember: an engagement ring doesn’t need a diamond center stone. For something more unique, explore other gemstones like rubies, emeralds, sapphires, or colorful birthstones. These can be just as breathtaking as a diamond and feel truly one-of-a-kind. Before choosing a gemstone, you might want to gently bring up the idea with your partner to make sure they’re comfortable with it.
Look Into Vintage Rings
Don’t forget to consider vintage or antique engagement rings! These pieces are not only beautiful and full of history—they’re often more affordable than modern rings. Before buying a secondhand ring, think about the era you prefer and check whether the ring has been altered over time. Your perfect ring could be a yellow gold Art Nouveau band waiting to be discovered.
Meet the Expert
Olivia Landau is the founder and CEO of The Clear Cut, the largest digitally native, natural-diamond jewelry company in the U.S., specializing in custom bridal and everyday fine jewelry. A fourth-generation diamond expert and G.I.A. Graduate Gemologist, she started The Clear Cut as an educational blog before turning it into a direct-to-consumer brand.
Frequently Asked Questions
FAQs How Much Should You Spend on an Engagement Ring
Basics Common Myths
Q Is it true you should spend three months salary on a ring
A No thats an outdated marketing myth from the mid20th century Theres no fixed rule Your budget should be based on your personal finances and priorities
Q Whats the average amount people actually spend
A According to recent surveys the national average in the US is between 5000 to 7500 However this varies widely by region age and income Many people spend far less or more
Q How do I even start figuring out a budget
A Start by looking at your savings monthly expenses and financial goals Decide on a comfortable amount you can spend without going into stressful debt
Financial Considerations
Q Should I finance an engagement ring or take out a loan
A Its generally not recommended Highinterest financing can add significant cost and stress Saving up and paying in cash is a much more financially healthy approach
Q Does the ring cost include the wedding band
A Typically no The engagement ring budget is usually separate from the wedding band Remember to plan for both
Q How can I save money without sacrificing quality
A Consider alternative stones a simpler setting or a slightly lower colorclarity grade These choices can offer significant savings
Personal Relationship Factors
Q How do I know what my partner expects or wants
A Communicate openly or pay close attention to hints Many couples now shop together You can also ask their close friends or family for guidance
Q What if my budget is much lower than what my partners friends have
A The ring is a symbol of your commitment not a competition A thoughtful wellchosen ring within your means is more meaningful than debt for a flashier one Honest conversation is key
Q Are there nontraditional lowercost options that are still meaningful
A Absolutely Many choose family heirlooms vintageantique rings or unique gemstones The sentiment behind the ring often