How Much Should An Engagement Ring Cost?

Budget Before Browsing Engagement Rings

It may sound deeply unromantic, but if you’re shopping for engagement rings together, talking about a budget early on can help keep you on the same page throughout the process. Without a budget, imaginations can run wild, and coming back to reality can be difficult.

Navigating the Four C’s—cut, color, clarity, and carat—can be overwhelming without a price in mind. A typical price point for a 1-carat mined diamond is $5,000; however, you can find 1-carat diamonds that cost as little as $1,000 or as much as $100,000. Welcome to the unfortunate complexity of diamond buying. Fortunately, with a budget in mind, you can narrow down your options to make the process a little less overwhelming while feeling confident about your purchasing power.

What’s the Average Cost of an Engagement Ring?

Alright, now that we’ve got the boring yet totally necessary need to plan your budget out of the way-let’s talk numbers. Engagement rings are expensive. If you were unaware, we’re sorry to break the news. It might be the most expensive thing you’ve ever bought. Combine that with the expectations surrounding the actual proposal and you have yourself a situation to figure out.

Data can give you some guidance on what other people are doing. In 2024, the average cost of an engagement ring according to The Knot 2024 Real Weddings Study was $5,680. In diamond terms, this could get you a 1 carat mined diamond solitaire, or a 1.75 carat lab diamond solitaire. But, averages can be deceiving. The vast majority of couples are spending less than $5,680 on their ring. A smaller group of big spenders is lifting the average. So, what does that mean for you?

It means you’ve got options. A little bit of research can help you spend wisely. With lab diamonds becoming an increasingly popular option, pricing is more flexible than ever before. Remember, you’ve got the wedding, honeymoon, and entire rest of your life still ahead of you. So don’t blow it all on the ring.

The Three-Month Salary Rule

You’ve probably heard of the three-month salary rule. We’d suggest unhearing it. It’s an outdated marketing campaign by DeBeers to boost diamond sales during World War II. A quick comparison of wage data to sales data makes it obvious that most Americans are spending much less.

Today’s couples are redefining what it means to invest in an engagement ring. With the rise of financial literacy and a greater emphasis on personal values, many are choosing to allocate their resources more thoughtfully. Rather than adhering to antiquated rules, they prioritize finding a ring that symbolizes their unique love story without causing financial strain. Whether it’s opting for a smaller diamond, choosing alternative gemstones, or selecting a minimalist design, the focus is on meaningful choices that reflect their relationship and future aspirations. By doing so, couples can start their married life on a solid financial foundation, free from the pressures of outdated norms.

How Much Should You Actually Be Spending on an Engagement Ring?

We’d suggest considering the questions below to reach a number and develop a plan. From there you can tackle other questions like where you should purchase your engagement ring (don’t worry, we know a guy) what diamond is right for you, what type of metal you prefer, etc. With that in mind, these are the factors we’d suggest considering when you’re in search of that elusive number.

Your debt

While debt shouldn’t be a reason to postpone your declaration of love and eternal commitment, it can certainly postpone a ring purchase. But, that doesn’t mean you’re out of options. In fact, there are many engagement rings available for under $1000. It may sound modest, but getting engaged is often the prelude to a shared financial future, and you’ll both agree that the future should be a sustainable one.

Your short-term financial goals

Whether you’re planning to buy a car or home, or you’re just saving up for a trip to the beach, you may have to prioritize. If you’re planning a destination proposal, you’ll want to go somewhere nice, and that can get expensive.

You (or your partner’s) personal preference

Although a little bit of a Catch-22, it’s important to take personal preferences into consideration when determining what you’re willing and able to pay. Because sure, sometimes there are things you can compromise on-swapping white gold for platinum, for example-but if there are non-negotiable wants like a certain style or type of stone, then it’s important to be upfront about that from the get-go.

How to Navigate Your Partners Engagement Ring Expectations

On that note, if you’re not sure what kind of engagement ring your partner is dreaming of, find out. Your goal is to find something you’ll both love. Partners often have completely different expectations, and it’s best to find out early on.

Fortunately, there are plenty of options for every price-point. If your partner’s got their heart set on a 2 carat diamond but that’s over your budget, consider lab diamonds, which can reduce the price of your engagement ring by as much as 50%. Whatever the specific case may be, mismatched expectations around style and size are the most common things that we see go awry, and we can’t tell you how many people we meet that are looking for advice on how to talk to their partners about it.

How to Save Money on Engagement Ring Costs

The easiest way to save money on engagement ring costs is to shop online. You’ll get more diamond for your money, and won’t have to deal with high-pressure sales tactics used to pressure buyers into rash decisions in a store. In general, you’ll get a better selection, priced 30-50% less than retail, and you can shop at your own speed. Talk about a win-win! But saving money doesn’t end there…

Mind margins to save money

Diamond prices increase exponentially at the half and full carat marks. If you can find a diamond a hair shy of 1 carat, you’ll realize tremendous savings. These can be tricky to find offline, but easier online with a greater selection. The actual difference in size between a .98 carat diamond and a 1.01-carat diamond is negligible, in some instances, the .98 carat diamond can look larger to the naked eye, and besides, who’s going to know?

Fancy cut diamonds can help you cut costs

Fancy cut diamonds sell at roughly 10% less than their round cousins. And if that wasn’t enough, flatter cuts like oval cut diamonds, pear shaped diamonds, and marquise cut diamonds look larger for their weight, and can be more visually impressive. Buying a fancy cut can be a great way to get more visual presence from less carat weight.

Opt for yellow gold

Yellow gold is trendier than ever, and we love the warmer timeless look. Diamonds, as you know, reflect things. A diamond set in yellow gold reflects yellow. This means you can also go down a grade or two in color without worrying about the diamond appearing yellow in the platinum setting. If you’re looking to reduce the amount you spend on an engagement ring, and stay on trend, this is a great way to do it.

Don’t sweat inclusions

Inclusions are the tiny imperfections found inside a diamond. Most diamonds sold online today are sold with highly magnified videos that do an excellent job highlighting inclusions and up-selling you towards higher clarity. Actual diamonds are much smaller, and the inclusions are more often than not quite difficult to see. Opting for lower clarity can be a great way to save money. Look for a diamond that is eye-clean,  (clear to the naked eye), but included under magnification. Grades SI1 – VS2 are great value.