Choosing an engagement ring is one of the most important purchases you’ll ever make. Not only is it a symbol of love and commitment, but it’s also a significant financial investment. So, the big question is: How much should you spend on an engagement ring?
Whether you’ve heard the “three months’ salary rule” or you’re trying to figure out the best balance between budget and beauty, this guide will help you make the right decision for your lifestyle and relationship.
The “Three Months’ Salary Rule” – Is It Still Relevant?
The old-school jewelry industry marketing suggested spending three months of your salary on an engagement ring. For example, if you earn $5,000 per month, the “rule” would suggest budgeting $15,000 for a diamond ring.
While this traditional guideline still works for some, modern couples are breaking away from rigid spending rules. Today, engagement ring budgets are much more personal - based on financial comfort, priorities, and unique preferences.
Average Cost of an Engagement Ring in 2025
According to recent jewelry market data:
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USA: The average engagement ring costs around $5,500–$7,000.
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UK: Couples spend between £2,000–£4,000.
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Australia: The average spend is about AUD $5,000–$6,500.
💡 Tip: These numbers are just averages. You can find beautiful engagement rings for under $1,000, especially if you consider lab-grown diamonds, moissanite, or alternative gemstones like sapphire or morganite.
Factors to Consider When Setting Your Engagement Ring Budget
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Your Financial Situation
Never go into debt just to buy a ring. Choose a budget that won’t put unnecessary stress on your future marriage. -
Your Partner’s Style
A smaller, well-cut diamond can sparkle more than a larger but poorly cut stone. Pay attention to diamond cut, clarity, and color for maximum brilliance. -
Metal Choice
Platinum is more expensive than white gold, yellow gold, or rose gold. Choosing 14K gold instead of 18K can lower costs without sacrificing beauty. -
Natural vs. Lab-Grown Diamonds
Lab-created diamonds cost 30–50% less than mined diamonds and are eco-friendly - a growing trend among modern couples. -
Alternative Stones
Moissanite, white sapphire, and emeralds can create a stunning engagement ring for a fraction of the cost.
Smart Ways to Save Money on an Engagement Ring
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Go slightly under “magic” carat weights (e.g., 0.9 ct instead of 1.0 ct) to save up to 20% with minimal visible difference.
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Choose a halo setting - it makes the center stone appear larger without the higher price tag.
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Shop online jewelers - brands like ANNXMEE, James Allen, Blue Nile, and Brilliant Earth often offer better value than traditional brick-and-mortar stores.
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Consider vintage or estate rings - unique designs with lower costs.
Why There’s No “Right” Amount to Spend
An engagement ring should reflect love, commitment, and your personal story - not just a price tag. Whether you spend $500 or $50,000, what matters most is finding a ring that feels perfect for your partner and your relationship.
If you’re wondering “How much should I spend on an engagement ring?”, remember there’s no one-size-fits-all answer. By understanding average costs, evaluating diamond and gemstone options, and setting a realistic budget, you can find a beautiful, meaningful engagement ring without financial stress.
FAQs: How Much Should You Spend on an Engagement Ring?
1. What is the average amount people spend on an engagement ring?
In the U.S., the average engagement ring cost is around $6,000, but many couples spend far less or more depending on budget, preferences, and diamond size.
2. Is the “three months’ salary” rule still relevant?
The three months’ salary rule is outdated. Modern couples often prioritize personal budget, lifestyle, and future financial goals over traditional guidelines.
3. How can I save money on an engagement ring without sacrificing quality?
You can save by choosing lab-grown diamonds or moissanite, opting for slightly smaller carat sizes, buying from online jewelers, or selecting alternative gemstones.
4. What is a reasonable budget for an engagement ring?
A reasonable budget is one that doesn’t cause financial strain. Many experts suggest spending 1–2 months’ salary or setting a fixed amount that works for your financial situation.
5. Are diamond alternatives worth considering for engagement rings?
Yes! Moissanite, lab-grown diamonds, sapphires, and morganite offer beauty, durability, and affordability, often costing a fraction of a mined diamond.
6. Do engagement ring prices vary by country?
Absolutely. Average spending differs worldwide—rings in the U.S. may cost more than in the UK, Australia, or parts of Asia due to cultural expectations and market prices.
7. What hidden costs should I consider when buying an engagement ring?
Don’t forget setting fees, resizing, insurance, taxes, and maintenance costs, as they can add up after purchase.
8. Should I buy an engagement ring online or in-store?
Online stores often offer better prices and a wider selection, while in-store shopping lets you see the ring in person. Many buyers combine both - research online, confirm in-store.
9. How does diamond shape affect the price of an engagement ring?
Round brilliant diamonds are usually the most expensive per carat due to high demand, while shapes like oval, emerald, and pear may give more size for less money.
10. What’s the most important factor when choosing an engagement ring?
The ring should match your partner’s style, fit your budget, and come from a reputable jeweler. Prioritizing cut quality over carat size often ensures maximum sparkle.
