How Much Should You Spend on an Engagement Ring? A Guide to Budgeting for the Perfect Ring

When shopping for an engagement ring, the amount you can expect to spend varies widely based on many factors like diamond quality, the ring setting, ring style, and personal budget. 

Average Cost of an Engagement Ring

The national average engagement ring price in the United States is around $5,500 to $6,000. However, the average cost of an engagement ring varies by state. Many couples choose engagement rings in the $1,000 to $3,000 range instead, while others will invest $10,000 or more for more detailed styles of diamond rings, and larger or higher-quality cut diamonds.

The final price tag will depend on key elements such as the diamond’s cut, carat weight, clarity, and color. The choice of precious metal and overall engagement ring design will also impact the price points of a diamond engagement ring. With options ranging from luxury brand rings to lab-grown diamonds and alternative gemstones, there’s a perfect engagement ring for every budget. Featured is Cartier Platinum Fancy Intense Yellow Cushion Cut Diamond Engagement Ring.

Should Your Engagement Ring Budget Follow the Three Month Salary Rule?

The traditional rule of thumb for buying an engagement ring used to be a two to three months' salary rule, but this idea is from an outdated DeBeer’s marketing campaign created by the diamond industry to increase their diamond sales after the Great Depression. Today, there’s no strict rule–it’s more about what fits your budget, financial situation and your partner’s preferences.

Many couples using a conservative budget-friendly engagement ring will spend $1,000 to $3,000 for their perfect ring. The average engagement ring cost in the mid-range choice is $3,000 to $6,000. Those wishing for luxury or larger-carat and higher-quality diamond rings may spend $10,000 or more.

Setting a Budget That Meets Your Financial Situation

Use a realistic budget and spend what you can afford. Prioritize financial stability over arbitrary spending rules. If you have numerous student loans or credit card debt, you need to choose a more conservative approach. When engagement ring shopping, some consider spending a one month salary price range versus a three months’ salary rule.

Focus on value, not just the price. You can get high-quality engagement rings at lower prices by choosing modest carat weights with excellent cuts, lab-grown diamonds, alternative gemstones, a pre-owned engagement ring or an heirloom ring. Featured are a 14K Yellow Gold Pear Cut Lab-Grown Diamond Engagement Ring and a 14K White Gold Vintage Round Brilliant Cut Diamond Engagement Ring.

A Closer Look at What Influences Diamond Price Points

The cost of an engagement ring is influenced by several factors. Here’s a look at some key elements impacting the price point of an engagement ring.

The Diamond (or Main Gemstone)

The 4Cs of a diamond are the biggest factor in pricing. Below is a guide on what to look for with the 4Cs. For a more comprehensive guideline to diamond buying, click the link.

• Cut: The cut is the most important factor. A well-cut diamond will look larger and more brilliant. Choosing grades of Excellent or Very Good cuts will cost more because of their maximum sparkle.

• Carat: Heavier diamonds increase the price. However, the cut, color, and clarity will still impact the price of a larger carat diamond. Getting a slightly smaller carat weight like .9 instead of 1.0 can save you money if you have a tighter budget. This beautiful ring has a center diamond that is .9 ct.

• Clarity: A natural diamond with fewer inclusions (imperfections) to the naked eye makes the diamond more expensive. The grades of VS2 or SI1 clarity can offer great value within the mid-range on the clarity chart. The engagement ring below has a SI1 clarity rating.

• Color: The GIA diamond color scale is from D-Z, with D the best colorless grade available, to Z with the most color.The less color (closer to a D grade), the higher the price. Colors G-H look nearly colorless at a lower cost. Shown is an engagement ring with the color G.

Certified Diamonds

Diamonds that have been certified by GIA come with a grading report so your diamond will cost more, but this certification guarantees the authenticity and quality of your natural diamond. Below is a GIA certified White Gold and Platinum Cushion Cut Diamond Engagement Ring.

Diamond Alternatives

Lab-grown diamonds cost less than a natural diamond while looking identical. The resale market of a lab-grown diamond will also be less. Alternate gemstones like moissanite, sapphires, or rubies can be an affordable option. Shown is a 14K White Gold Moissanite Solitaire Ring and a14K White Gold Pear Cut Sapphire and Diamond Ring.

Custom Engagement Rings

Custom & Designer Engagement Rings are designed uniquely to match personal preferences. A custom ring often involves handcrafting, rare diamonds, or premium precious metals. You can have your custom ring designed with your budget in mind. Here is a Platinum Custom Designed Princess Cut Diamond Engagement Ring.

The Engagement Ring Setting

Choosing the right ring setting and band is just as important as selecting the diamond itself, as they define the ring’s overall style, durability and comfort. With a variety of options available, from classic solitaire settings to intricate halo or pave design, the setting can enhance the diamond’s brilliance and impact the ring’s cost.

A Solitaire Engagement Ring features a single center stone, usually with a simple band. This type of ring style is more affordable because there are no additional diamonds or intricate settings. Prices will vary depending on the quality of the center stone, carat weight, and precious metal. The ring price of a solitaire generally is in the most budget friendly to mid-range category. Featured is Tiffany & Co. Platinum Diamond Solitaire Engagement Ring.

Halo Rings are in a higher price range. This ring style features a center stone surrounded by a “halo” of smaller diamonds to add sparkle and make the center gemstone appear larger. The halo ring style will cost more than a solitaire because of the additional diamonds and intricate setting. Shown is a Platinum Brilliant Cut Diamond Engagement Ring with Halo.

Pave and Side Stone Rings are in a higher price range because they feature tiny diamonds embedded along the band adding extra sparkle. Their price will depend on the number and quality of the additional diamonds, plus the added craftsmanship involved. Below is a 14K White Gold Diamond Engagement Ring and 14K White Gold Round Brilliant Cut Diamond Engagement Ring.

Three-Stone Rings will be a more expensive ring because it includes a center gemstone with two side diamonds (or gemstones) for added brilliance. This style will cost more than a solitaire because it requires multiple high-quality stones. Shown is a 14K Yellow Gold Brilliant Cut Diamond Three Stone Engagement Ring and 18K White & Yellow Gold Cushion Cut Diamond Engagement Ring.

Vintage & Antique Rings will feature intricate details like filigree, engraving, or colored gemstones. Pricing depends on rarity, craftsmanship, and materials. These rings can be more economical than modern rings if bought second-hand or as an heirloom. Below a 10K Yellow & White Gold Vintage Diamond Cluster Ring and 14K White Gold Deco Style Mosaic Set Diamond Ring.

Precious Metals and The Ring Band

The choice of precious metal, whether platinum, white gold, yellow gold, or rose gold, affects the ring’s durability and aesthetic appeal. Whether you prefer a simple and elegant band or a more elaborate, diamond-accented setting, understanding these elements will help you find the perfect engagement ring that suits both your style and budget.

Precious metal impacts the price point of your engagement ring. Platinum is the most expensive precious metal due to its durability. 18K (white gold, yellow gold, or rose) will be slightly less expensive than platinum. 14K gold is the most budget-friendly. Featured are engagement rings in platinum, yellow gold, white gold, and rose gold.

Best Times to Buy an Engagement Ring

You can get the biggest discounts from some jewelers on Black Friday and Cyber Monday (November). Valentine’s Day (January-February) will often be times when jewelers run promotions, but prices can be higher right before February 14 due to demand. Holiday seasons in November through December, and Labor Day and Memorial Day sales can find many jewelers offering discounts on select styles.

Off-peak seasons of spring and summer (March-August) are good times to go engagement ring shopping as the demand often drops after Valentine's Day. Jewelers may lower prices or run clearance sales on older inventory. 

Watch for jewelry stores that celebrate their annual anniversary by holding special anniversary sales that include engagement rings and wedding rings. 

In Conclusion

The price of an engagement ring varies due to several key factors, including the diamond’s quality–carat, cut, clarity, and color. The choice of precious metal, ring setting complexity, and choice of natural gemstone or lab-grown will also impact the final price tag. Additionally, brand reputation, craftsmanship, and market demand can further influence the final cost.

While traditional guidelines once suggested spending two to three months’ salary, modern couples prioritize personal budgets and value over arbitrary rules. Whether opting for a luxury designer ring, a budget friendly solitaire, or a unique gemstone alternative, the best choice is one that balances quality, affordability, and personal meaning. Ultimately, an engagement ring’s true worth lies in the love and commitment it symbolizes, rather than its price tag.

We can help you with your engagement ring shopping at The Estate Watch & Jewelry Company. Whether you are looking to have a custom design engagement ring or choose from our existing beautiful collection of rings and wedding bands, let us partner with you to find that perfect ring within your engagement ring budget.