How Much Should You Spend on an Engagement Ring? Smart Budgeting Tips for 2025

Planning to pop the question? One of the first things to consider is how much to spend on an engagement ring—and despite what outdated “three months’ salary” rules may suggest, there’s no one-size-fits-all amount.

Buying an engagement ring is a big decision, but it doesn’t have to break the bank. Today, more couples prioritize personal meaning and smart budgeting over price tags. From understanding the “Four Cs” (cut, color, clarity, and carat) to finding a ring that suits both your budget and your partner’s style, you can absolutely find the perfect ring without going into debt.

Before you shop, consider these 8 expert-backed tips to help you budget, compare options, and stay financially savvy during your engagement journey.

1. What’s the Average Cost of an Engagement Ring in 2025?

If you’re unsure how much to spend on an engagement ring, a good starting point is understanding what others typically pay. For years, the “two months’ salary” rule was the standard—but that guideline is more marketing than reality.

In fact, this rule dates back to a 1930s De Beers advertising campaign, created during the Great Depression to boost diamond sales. It originally encouraged spending one month’s income on a diamond ring, eventually increasing to two (and even three) months through clever marketing.

Today, however, most couples spend based on personal budget, not tradition.

The average cost of an engagement ring in 2025 ranges from $5,000 to $7,000 in the U.S., but many spend far less—or more—depending on style preferences and financial goals.

Modern Engagement Ring Prices: Forget the “Two-Month Salary” Rule

Once upon a time, the jewelry industry suggested spending two to three months’ salary on an engagement ring—a marketing strategy born during the Great Depression to boost diamond sales. For someone earning a low six-figure salary today, that outdated formula could push you toward rings costing $25,000 or more.

But let’s be real: That rule doesn’t reflect modern spending habits. According to The Knot’s 2023 Real Weddings Survey, the average cost of an engagement ring in the U.S. is around $5,500, and most buyers spend well under $10,000.

The price can vary greatly based on:

1. Type of gemstone (diamond, moissanite, sapphire, etc.)
2. Metal choice (white gold, yellow gold, rose gold, platinum)
3. Carat weight and cut
4. Ring setting and design complexity

These variables allow couples to find a beautiful ring at nearly any price point, without overextending their budget.

Step 2: Create a Realistic Engagement Ring Budget

Just like planning your wedding, setting a firm engagement ring budget is essential. The goal is to celebrate love—not create debt. An engagement ring is meaningful, but that doesn’t mean it should break the bank.

Here’s how to budget smartly:

1. Review your current finances — salary, savings, and spending habits.
2. Discuss expectations with your partner to avoid mismatched ideas.
3. Use a spreadsheet or budgeting app to track spending and stay on course.
4. Include hidden costs, like:

1. Jewelry insurance
2. Resizing fees
3. Taxes and warranties

Whether you’re spending $1,000 or $10,000, the best ring is one you can afford with confidence.

3. Don’t Empty Your Savings — Explore Smart Financing Options

When it comes to buying an engagement ring, don’t feel pressured to deplete your savings just to impress. If the ideal ring is slightly out of reach, there are responsible financing solutions to help make it affordable.

Start by exploring:

1. Jeweler financing plans – Many jewelers offer in-house payment plans with fixed monthly installments.
2. Credit cards – Some buyers choose to use a low-interest or 0% APR credit card to spread out the cost over time.

However, proceed with caution:

1. Always compare interest rates and fees before committing.
2. Set a realistic payoff timeline that won’t stretch your budget too thin.
3. If you struggle with making timely payments or managing debt, use financing only as a last resort.

The key is to honor your commitment without creating financial stress. A meaningful ring doesn’t have to come with a mountain of debt.

4. Learn the “Four Cs” with a Trusted Jeweler

Before purchasing an engagement ring, it's essential to understand the “Four Cs” of diamonds — cut, color, clarity, and carat weight. These key factors affect not only the ring’s beauty but also its price.

If you don’t have a trusted jeweler or family heirloom to rely on, don’t worry. Start by:

1. Visiting local jewelry stores to explore your options.
2. Asking friends or family for reputable jeweler recommendations.
3. Comparing jewelers to find someone who offers education, transparency, and no-pressure guidance.

You don’t have to make your final purchase from the first store you visit — think of it as doing your diamond homework. Working with a knowledgeable professional helps ensure you get the best quality for your budget and feel confident in your decision.

5. Define What You Want in an Engagement Ring

Once you've narrowed down where to buy an engagement ring or selected a trusted jeweler, it's time to explore the design elements that matter most to you and your partner.

Start by considering:

1. Metal types: yellow gold, white gold, rose gold, platinum
2. Band styles: classic, pavé, halo, vintage-inspired
3. Stone options: natural vs. lab-grown diamonds, moissanite, or other gemstones

If your partner dreams of a classic diamond ring, now is the time to revisit the Four Cs — cut, color, clarity, and carat weight. These features not only define the diamond’s beauty but also influence its price and value.

For example:

1. A diamond with high clarity will appear flawless to the naked eye.
2. A lower color grade may result in a warmer hue but can reduce cost significantly.

Prioritize the Cs that matter most to your preferences and budget. Also, ask if the diamond is GIA-certified — a GIA (Gemological Institute of America) grading ensures the stone’s authenticity and quality.

4. Compare Lab-Grown Diamonds vs. Natural Diamonds

If you're looking for a larger diamond on a budget, lab-grown diamonds offer exceptional value. These man-made stones are chemically and visually nearly identical to natural diamonds, but cost significantly less. In fact, a natural diamond could be 3–4 times more expensive than a lab-grown stone of similar quality.

Why choose lab-grown?

1. Better clarity and cut for the price
2. Ethically created and environmentally friendly
3. Perfect for budget-conscious buyers

However, natural diamonds often retain more long-term value and carry traditional significance.

Choosing between them depends on your priorities—whether it’s origin, resale value, or maximizing size for your budget.

5. Compare Prices Before Buying

Don't feel pressured to buy the first ring you see. Shopping around is key to finding a better deal on the same design. Check:

1. Local jewelers
2. Online retailers
3. Diamond districts in major cities

Many major brands add significant markups, so working with a certified local jeweler could give you higher quality for a better price. Get quotes from multiple sellers, especially if you have a specific style or diamond shape in mind.

6. Take Advantage of Jewelry Sales

Yes, you can save big on engagement rings by timing your purchase right. Watch for sales around:

1. Black Friday
2. Valentine’s Day
3. Holiday weekends (Labor Day, Memorial Day, etc.)

Ask jewelers if they have upcoming seasonal promotions, and don’t hesitate to negotiate—especially with independent dealers. A 20–25% discount isn’t uncommon and can make a major difference without compromising quality.

7. Explore Non-Diamond Engagement Rings

Who says a diamond is the only option? Alternative engagement ring stones like:

1. Sapphires (royal blue or pastel)
2. Rubies (vibrant red)
3. Emeralds (rich green)
4. Moissanite (brilliant and durable)

These gemstones can offer unique beauty and bold color at a lower price. Just make sure your partner is on board—some people still prefer the timeless look of a traditional diamond.

8. Consider Vintage Engagement Rings

If you’re seeking something truly timeless and unique, vintage engagement rings are worth a look. These rings often cost less than new designs, and they carry historic charm from eras like:

1. Art Deco
2. Victorian
3. Edwardian

Before purchasing, research the ring’s provenance, check for previous alterations, and make sure the size and condition are right for your partner. Vintage rings can be a beautiful, meaningful, and eco-conscious choice.