There’s no set rule on how much you should spend on an engagement ring, but it’s important to understand the factors that go into costs—like diamond GIA gradings, carat weight, and settings—to determine what best fits your budget.
If you’re planning to propose, one of the first steps in your engagement planning is understanding how much should you spend on an engagement ring. This isn’t something you’d be expected to instinctively know, as there have been many different rules of thumb over the years around what that ring price tag should actually look like.
But you should be aware that this piece of jewelry doesn t have to put you into debt to make you and your partner happy. In fact, several factors go into purchasing a ring, from creating an engagement ring budget to learning all about the “four Cs,” to considering the perfect stone that fits both your wallet and your partner’s aesthetic preference.
“Price doesn’t always reflect beauty or quality. Two rings can look similar on paper, yet feel completely different once you understand the design, cut, and craftsmanship behind them,” explains Olivia Landau, a fourth-generation jeweler and founder of The Clear Cut. “Working with a trusted expert allows you to focus on what truly matters to you—whether that’s brilliance, proportion, or personal style while staying within budget. A thoughtfully designed custom ring often offers incredible value and results in something timeless, personal, and made to last.”
Read ahead for 10 pieces of advice to keep your head on your shoulders while searching for that perfect engagement ring.
Understanding the Average Cost of an Engagement Ring
If you have absolutely no idea where to start on how much to spend on an engagement ring, it s not a bad idea to look at the average amount people spend. While engagement rings are a pricey investment, the national average is $5,200, according to The Knot’s 2024 Jewelry Engagement survey. However, this number doesn’t factor in specifics around factors like the types of gemstones used, metals, carat weight, and setting of a ring. A natural, two-carat diamond with high clarity and color will usually start at prices around $10,000, while a lab-grown stone of similar size can be a third of the cost. Working with a well-known jewelry designer may lead to a higher markup, while sourcing a stone from the diamond district or a vintage dealer can often score you some discounts.
Does the Three Month Rule Still Apply?
The rule of thumb people typically followed of what to spend on an engagement ring was the two-month salary guideline. This was created during the Great Depression, when diamond sales weren t doing too well and De Beers, a leading diamond company, sought to improve the situation. The marketing campaign cast diamonds as the ultimate symbol of love and encouraged buyers to put aside one month s pay (which the company later boosted to three), to purchase a diamond engagement ring.
In the present day, this means a salary in the low six figures could translate into options that are at least $25,000 and up. But this rule is quite outdated. “Today’s couples are far more thoughtful—and realistic,” shares Landau. “We see people setting budgets based on financial comfort, shared values, and long-term goals, not formulas. There’s no single ‘right’ amount to spend.” She advises, “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 well beyond the three-month rule and some spend less, depending on what is important to them and their future.
Much Like a Wedding Budget, Set an Engagement Ring Budget
There s no need to go into debt or take out a student loan s worth of money for an engagement ring. This piece of jewelry is meant to be special, but not unreasonable. First, it s important analyze you and your partner s current financial situation: salary, savings, and how much you would ideally wish to spend. Then, create a budget. If you re not too great with budgeting (don t worry, you re not the only one), pull out a spreadsheet and create a physical plan you ll want to stick to while engagement ring shopping. Be sure to factor in additional costs to your total, like jewelry insurance.
In essence, don t drain your savings for the sake of a ring. If you know you don t have enough to purchase the ring your partner is set on, consider payment plans. Check with your jeweler to see if they offer in-house financing, or think about using a credit card to cover the cost. There are payment options readily available, but be responsible by looking into interest rates and the realistic timeframe for paying off the ring. If you know yourself well enough to know you re not the best at timely payments, consider this as a last resort.
Go Over the “Four Cs” With a Reputable Jeweler
Not everyone is going to have a reputable jeweler on hand or a family heirloom ring prepped and ready for the upcoming proposal. Start at local jewelry stores or gather recommendations from family members and friends. This doesn t have to be where you buy or design your ring with a custom setting, but it s a good place to begin your search. “It’s important to work with someone who’s transparent and educational, so you understand why something costs what it does,” says Landau. “A well-designed ring should feel considered and personal, not stressful or arbitrary.”
When you have a good grasp of who or where you want to purchase your engagement ring from, gather a rough idea of what you want in a ring. Explore types of metals like yellow gold or platinum, different shapes and styles of bands, and natural and lab-grown stones. If you know your partner is a true diamond lover, ask your jeweler about the “four Cs," which are cut, color, clarity, and carat weight. These factors come together to determine the overall look and value of a stone. For instance, a stone with a higher clarity may not have any inclusions apparent to the naked eye, while one with lower color might have a warmer tint. It s important to determine which “Cs” matters most to you, as that can impact a ring s price point. You also should ensure if the stones you are looking at are GIA graded, as these stones have true verification of their value.
Jewelers may be able to advise on how to find the best balance of the “Cs” to get a stone that’s within your budget. For instance, carat weight can often be one of the biggest factors in price markup. If you want a three-carat stone, finding one that’s just under that weight—around 2.8 or 2.9 carats—could cost you significantly less.
Consider Different Metals
Just as the price of diamonds can vary based on quality, so does the metal that holds the ring together. Platinum is the strongest, most durable metal and often has a slightly higher price tag thanks to its strength. But you might prefer the color of yellow gold for your partner’s ring. The price of gold can fluctuate based on the market, so it’s important to consider its current rate as you go shopping. “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.”
Consider Lab-Grown Diamond Versus Natural Diamond Pricing
If you are trying to get a larger stone on a budget, you might hear friends recommend you to look into lab-grown diamonds. These stones are near identical to a natural diamond—aka one that was naturally occurring in nature and mined—however they are produced in a factory setting at a fraction of the cost. While the value of a lab-grown stone is much lower than a natural diamond, you can find them at higher cuts and clarities for a much better price tag. Choosing between either a natural or lab-grown diamond comes down to a matter of preference in terms of its origin and value. If you prefer to have a natural diamond engagement ring, you should factor to spend about four times the cost of a lab-grown stone.
Don’t Be Afraid to Compare Prices
Don t feel the need to say yes to the first, or even eighth, ring you see. Look at other wedding ring designs that vary in price, or ask multiple jewelers for their prices if you have a specific design in mind. Many well-known brands will have a higher markup, so working with a jeweler in your local diamond district could often provide you the best price for the quality. There’s no shame in educating yourself on high-quality jewelry, so why be afraid of educating yourself on price points? Although you’re aware of the national average people spend on engagement rings, that doesn t mean it applies to you. Gather a reasonable price range for the type of ring design you re interested in, and proceed with confidence.
Shop Jewelry Sales
It s absolutely possible to avoid purchasing an engagement ring at full price. In fact, many jewelry brands will offer sales throughout the year corresponding with Black Friday or other big holiday weekends. It s best to do a little research to see what jewelers have historically hosted sales at certain times or even ask your sales associate you re working with if they have any on the horizon. When working with a diamond dealer, it s also possible to do some light haggling on your ring pricing. After all, that incredible ring will look exactly the same with a 25% discount.
Consider Alternative Gemstones
FYI: An engagement ring does not have to have a diamond center stone. If you want a more original ring, you might look into gemstones other than diamonds, like rubies, emeralds, sapphires, or other colorful birthstones. These options can be equally stunning as a diamond ring, while also feeling absolutely unique. Before proposing with a gemstone, you may want to subtly run the idea by your partner to ensure they will be comfortable with this decision.
Look Into Vintage Rings
Don’t overlook vintage or antique engagement rings! These pieces of jewelry are not only beautiful and charming pieces of history, but they also tend to be less expensive than modern-day options. There are a number of aspects to take into consideration before purchasing a secondhand ring, like deciding on the era of preference or being made aware of any alterations the ring has had over the decades. Your perfect ring might just be a yellow gold band from the Art Nouveau era.
Olivia Landau is the founder and CEO of The Clear Cut, the largest digitally native only-natural diamond jewelry company in the U.S., specializing in bespoke 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 transforming it into a direct-to-consumer brand.
