How Much Should You Spend on an Engagement Ring? (2024)

You can’t put a price on the perfect proposal, but you can put one on the perfect engagement ring. Decades ago, the suggested budget for this purchase was typically one month of the giver’s salary. Yet over time, this guideline slowly shifted toward two months—and then three. However, the factors that determine your engagement-ring budget are much more complex than simply taking cues from your paycheck. Instead, you should consider everything from the design of the band and the type of center stone to your financial situation and the wearer’s taste in jewelry.“While the ‘three-month salary’ rule is still referenced, it’s more common now for the spend to be based on individual financial circumstances and personal decisions, rather than a standard formula to be followed,” says jeweler Olivia Landau of The Clear Cut.

Every engagement ring-buyer handles the element of surprise differently: Some purchasershave a specific request from their partner, while others use a family heirloom or present a ring on which the recipient had zero input. But if you and your partner have combined your bank accounts—or have joint financial goals, such asfunding your retirement accounts or finishing your fixer-upper—then the budget for an engagement ring should be a mutual decision. “Deciding on a budget together can be a good idea, as spending habits can cause a lot of friction in many relationships,” says Cassandra Rupp, a certified financial planner and senior wealth advisor at Vanguard. “Buying an engagement ring is an exciting first step toward marriage, and it might be the first major short-term financial goal you encounter as a couple.”

And while the price tag on your engagement ring might have you raising your eyebrows at first, remember that you’re not just investing in your relationship; you’re also investing in a future heirloom. “Engagement rings should definitely be considered as investment pieces, especially if the ring is a natural diamond,” says Landau. “Not only is there potential for a ring to grow in value, but these are also heirlooms that can be passed down for generations. Rings with unique gemstones or certain antique pieces may hold or increase in value, so investing in high-quality craftsmanship and material is a wise decision, especially if resale down the line is a consideration.”

How Much Do Couples Typically Spend on an Engagement Ring?

The cost of an engagement ring often starts with the center stone, as you choose from diamonds or gemstones that may be lab-grown or natural. A 2024 survey from Angara put average spending for one-carat natural diamonds at $6,000 and for two-and-a-half-carat lab-grown diamonds at $3,750. Other types of gemstones, such as sapphires, emeralds, and rubies, have an average price of $4,500 for a 1.25-carat natural stone and $3,000 for a three-carat lab-grown version.

Custom designs from luxury jewelers have an even wider price range, as couples pair heirloom or new stones with custom settings and embellished bands. “This range varies, but the majority of our couples are looking for something within the $5,000 to $10,000 range, with, of course, some ranging lower and much higher than this,” says jeweler Jennie Kwon of Jennie Kwon Designs. Landau often sees clients with a range of $3,000 to $25,000—or even higher.

How Much You Should Spend on an Engagement Ring: 3 Ways to Determine Your Budget

While experts recommend considering several factors as you set a budget for an engagement ring, they collectively agree that the most important aspect is ensuring it's an individual decision—not one influenced by your friends’ rings, your social media feed, or what your parents say. “Couples should base their spending on their personal financial situation rather than outside pressures,” says Landau. “Be sure to prioritize whatever aspect is most important to you, and remember that the sentiment behind the ring is often more valuable than its price.”

Look Over Your Financial Situation

Rupp recommends considering all your financial goals as you decide which ring will work with your spending plan. “This looks like clearly identifying the ring of choice, understanding how it fits into your budget, and establishing a realistic timeframe to purchase,” she says. If you have several years to save for your dream stone, you can incorporate money market funds or small investments to help boost your budget—without jeopardizing your overall financial health. “This can also help prevent you from tapping funds safeguarded for other goals, like retirement and high-interest debt from credit cards,” she says.

Remember that an increase in wealth often comes with age, meaning a just-out-of-college couple might opt for a smaller ring than a couple with two established careers. “Financial security plays a major role, with more budget-conscious couples choosing smaller diamonds or more mass-market options, rather than customization, to lower costs,” says Landau. “Older couples may have more money saved and therefore more to spend, while younger couples might prioritize affordability,”

Consider Your Wedding Plans

If you and your future spouse have already discussed a vision for your wedding, then your engagement-ring spending might be affected by those plans. An event with a seven-figure price tag might call for a flawless, gumdrop-sized stone, while a more low-key event might shift your priorities toward a one-of-a-kind heirloom. “The cost of the wedding can definitely impact how much one is willing to spend on the ring, as does the timeline between the engagement and the ceremony itself,” says Landau. “Rings can be factored into overall wedding costs for some couples, whereas others see it as a wholly separate investment.”

And if you haven’t talked about your wedding spending in advance of your engagement, it should be a top-priority conversation after the proposal. “[Considering] an engagement ring, bachelor and bachelorette parties, wedding attire, the ceremony, and the honeymoon, an engagement and wedding all add up very quickly,” says Rupp. “So having open communication around budgeting, saving, tackling debt, and short-and long-term financial goals from the start can help set you up for smooth sailing.”

Personal Preferences

If you’re expecting your future spouse to wear this ring every day for the rest of their life, you need to balance your budget against the stones and styles they like. “Customization and elaborate designs typically increase costs, so if a partner prefers a unique design versus a more minimalist approach, that could greatly impact the budget,” says Landau. If your partner requests a design built around a passed-down or vintage diamond, then the costs will vary based on the metal, workmanship, and size. “It depends on whether, for custom projects, we source a stone for the client or if the client decides to provide one for us to build a setting around,” says Kwon. “There are a ton of variables that play into how much a client ends up spending on a ring.”

How to Choose the Right Ring for Your Budget

Spending your entire budget on an engagement ring doesn’t always mean getting the most out of your money. “We have seen clients who are more budget-conscious in recent years,” says Landau. “While they may not be spending less than they plan, most are pressing for the best overall value for their budget.”

Choose Your Cs

Diamonds are famously priced according to the four Cs—cut, color, clarity, and carats—but a professional jeweler can help you determine which Cs you should emphasize to make the most of your budget. “When a couple has a set budget on a piece, we try to pick their brain on what is important to them,” says Kwon. “The quality of the stone? The size? The overall feel? From there, we can advise the client on what to prioritize. For instance, if a client interested in a diamond ring has a fairly tight budget and wants a yellow gold ring, we sometimes recommend that instead of color, which will be affected by the color of the setting, they should focus more on clarity.”

Accentuate the Stone’s Character

Know that an engagement ring can be unique and eye-catching—even if your budget doesn’t allow for multiple carats. “A smaller stone can be just as impactful as a larger stone if the ring is designed thoughtfully,” says Landau. “Working with a trusted gemologist to guide the stone selection and design process is key here. What a couple wants to prioritize in their ring is very personal. A seasoned professional can help balance out the four Cs of the diamond versus the design elements chosen for the ring.” Kwon agrees: “Our clients have historically been less concerned about the four Cs, and instead, really focus in on what uniquely resonates with them,” she says. “We love that the Jennie Kwon Designs bride isn't boxed in by carat size and is confident in selecting something that may stray from tradition.”

Look Beyond Diamonds

While tradition (and sales pitches) have associated diamonds with engagement rings for generations, you can make your budget go further—while still creating a one-of-a-kind piece—by choosing a ruby, amethyst, pearl, sapphire, or emerald as your center stone. “We have a ton of clients who love colored stones as engagement rings,” says Kwon. “For these clients who are so openly willing to buck tradition, the budget really varies depending on the type of stone they are interested in and the scale of the piece as a whole.”

Make It Custom

The most reliable way to turn a fixed budget into a distinctive piece is to create a custom ring with the help of a jewelry designer. “The majority of our clients don't follow something like the three-month rule,” says Kwon. “They often come to us with a particular design of ours in mind, whether that be one that features a diamond or colored stone, and a range that they would ideally like to spend on their engagement ring.”