We've established that there are no rules about how much you should spend on an engagement ring or your wedding, but people still like to know how they compare. According to a 2020 Australian wedding industry report, the average couple in Australia is spending $5,367 on their engagement ring.
General Rule: You should spend at least 2 months salary on the engagement ring. If, for example, you are making $60,000 per year, you should spend $10,000 on the engagement ring.
That's still a substantial sum: A one carat engagement ring typically costs around $5,500. But most couples have no idea what diamonds cost: they set out to spend between $1,000 and $5,000, yet the average cost of an engagement ring ends up being over $6,000.
According to recent surveys, most American couples expect to spend between $1,000 and $5,000 on an engagement ring. The actual average cost for an engagement ring is over $6,000. With all that said, most women are reasonable and just.
According to tradition, the amount you choose to spend on an engagement ring should approximate the amount of your monthly salary times two. By this measure, anyone who earns $2,000 a month should be looking at models in the $4,000 range. For someone earning $10,000 a month, a $20,000 ring would be about right.
It's known as the "three months' salary" rule, and it implies that a buyer should put three months of their salary toward a sparkler for their future spouse. For context, The Knot 2021 Jewelry and Engagement study found that the average cost of an engagement ring in the US is $6,000.
According to data published by Rapaport, the average amount spent on an engagement ring is $6,000, with around a third of all couples spending between $1,000 and $4,000. So, with a $25,000 engagement ring budget, you'll be able to afford something far above average.
Average Engagement Ring Cost
While $6,000 is the national average cost of a ring, the spend per couple varies. Our study found that roughly one-third of all respondents are spending between $1,000 to $4,000 on their engagement ring. In fact, 8% of ring shoppers are spending under $1,000.
Engagement Rings Are a Depreciating Asset
Like a car, a diamond is a depreciating asset since it loses a large portion of its value the second you buy it. Think about gold and silver. The market for them is very liquid and fungible since you can store coins, sell them at any time or even trade them later on.
While spending a large amount of money on an engagement ring will buy you a stunning piece of jewelry, the reality is that you don't need to go broke finding the perfect ring. You don't want to bring excess debt onto a new marriage, so it's important not to spend more than you can realistically afford.
While most financial experts would agree that paying for an engagement ring in cash is the ideal option, that option doesn't work for everyone. At the end of the day, only you can make this financial decision for yourself.
Yes, $3,000 is definitely enough for an engagement ring. You can get a beautiful, high-quality diamond and a setting with this budget.
Your Ready to Propose!
If you're going with a pre-designed ring, make sure to purchase that at least one month before your proposal date, while two months minimum should be allotted for a custom ring.
The most traditional way to go about this would be the bride pays for the groom's wedding ring plus a gift and the groom pays for the engagement ring and matching wedding band for the bride.
On your wedding day, your engagement ring should be worn on the third finger of your right hand. Then, once you've said your I-do's, your engagement ring should be placed back on the third finger of your left hand, on top of your wedding band.
Traditionally, the groom picks out the ring for his bride, one of the few choices he has to make for the wedding. However, modern bridezillas are trying to take control of this, too, with an increasing number of women choosing their engagement ring.
On average, the retail price for one carat diamonds can be anywhere between $2,000 to $16,000, and between $8,000 to $72,000 for two carat diamonds .
A 1-carat diamond and gold engagement ring will fetch resale prices ranging from $1,000 to $5,000, depending on the cut, quality and setting. Platinum setting and large side stones can mean higher prices, as can name brands like Tiffany or Cartier.
The average size of diamonds in engagement rings in Australia. The average size of a diamond in engagement rings in Australia is 1.0, and the most frequently bought carat sizes in 2023 are 0.5, 1.0, 1.25 and 1.5. Many consider a one-carat diamond solitaire engagement rings as a classic choice.
The average engagement ring size varies across the globe. It constitutes 0.6 CT in the U.K., 0.9 CT in the USA, 0.5 CT in Europe. The most desired сarat size on a finger in Australia is 1.0. According to our survey, the most frequently bought carat sizes in 2021 are 1.25, 1.0, and 1.5.
Is $5,000 Enough for an Engagement Ring? Yes. A budget of $5,000 is absolutely enough to buy a beautiful engagement ring that your fiancé-to-be will love. For example, this stunning 1.2 carat, K color, VVS1 round diamond set in a beautiful 18K yellow gold solitaire ring from James Allen is $4,860.
The average carat weight of an engagement ring in the United States is 0.9 Carat. Choosing a 1 carat diamond is ideal because it can fit within your budget without being visually overpowering. Premium diamonds of higher carat weights are also very rare.
$10,000 is quite a generous budget for an engagement ring. It's certainly much more than the median amount spent on an engagement ring, which is generally less than $3,000 — something we've covered more below.
Typically, a $10,000 budget can allow you to buy a diamond between 0.75 carats and 2 carats. If you opt for a 0.75-carat stone, it measures about 5.7 mm.