What is the origin of the salary rule for engagement rings?

The old adage that you should spend three months’ salary on an engagement ring actually has its roots in advertising. It harkens back to the Great Depression, when diamond sales were down. A top diamond retailer launched a marketing campaign aimed at increasing sales. Needless to say, it worked. The allotment back then was one month’s salary, which increased to three over time.

How can I pay less for my engagement ring?

Consider the smart shopping tips above and remember that lab-grown diamonds may cost significantly less than mined diamonds.

How Much Should an Engagement Ring Cost?

4 Min Read | Last updated: July 23, 2026

A couple picking out an engagement ring while in a jewelry store.

This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.

Find out what an engagement ring may cost, what affects the price, and how to choose a ring that fits your budget and priorities.

At-A-Glance

In engagement ring shopping, the “three months’ salary” rule has retired. It grew out of a 1930s diamond marketing campaign, and many modern couples are happily ignoring it in their purchasing decisions.
The national average engagement ring cost sits over $7,300, but spending varies widely by region, stone type, and other preferences, with one-third of buyers spending less than $3,000.^1,2
Smart shopping strategies, like buying shy on carat weight or considering lab-grown diamonds, can stretch your budget without sacrificing sparkle.

The rules of engagement, financially speaking, have changed. When it comes to the ring, modern couples are rewriting the playbook on what to spend, where to shop, and even which kind of gem. That often means prioritizing personality and practicality over outdated rules like spending three months’ salary on a ring. Whether you're saving up for a showstopper, comparing diamonds online, or planning the big surprise in secret, knowing how much others are spending on an engagement ring can help you make a confident, informed decision.

If you were still playing by the old rules, purchasing an engagement ring would cost nearly $14,800, based on the most recent weekly wage data from the Bureau of Labor Statistics (BLS).³ However, in 2025, the average engagement ring came in far below that estimate: Aspiring fiancés spent an average of $7,364 on an engagement ring, according to a report by the Natural Diamond Council, an industry organization.⁴

While an average price tag is a good start, how much should an engagement ring actually cost? Here's what the latest data and a little common sense have to say.

What Is the Average Cost of an Engagement Ring in the U.S.?

The average cost of an engagement ring in the U.S. varies depending on who you ask. One 2025 study reports it’s $7,364, while another suggests a more modest average of $6,504.^5,6 While those averages encompass all types of engagement rings, it’s worth noting that there’s a wide gap between the price of natural diamond rings and lab-grown diamond rings. In 2025, these were the average prices of each, according to a study by insurer BriteCo:⁷

Natural diamond: $10,760.09
Lab-grown diamond: $5,187.55

Wedding site The Knot dug a little deeper into the 2024 data, as well, providing a fuller picture of what couples are actually spending:⁸

64% of couples spent less than $6,000
33% of couples spent under $3,000
8% spent between $10,000 and $14,999 (and of those, 5% budgeted for more than $15,000)

So, while the national average falls somewhere between $6,500 and $7,400, most couples spend less than that. That shows there's no universal “right” number to spend. It’s ultimately about what works for your wallet and your relationship.

How Much Should an Engagement Ring Cost?

The honest answer? Whatever fits your financial situation without derailing your future. There’s no one-size-fits-all formula, because what you spend on an engagement ring is a very personal decision. Spending more than you can comfortably afford can create financial stress before the wedding bells even start ringing.

When determining your engagement ring budget, you may want to weigh these factors:

Your wedding and honeymoon budget
Your current income and short-term earnings outlook
Current savings balances
Monthly expenses, including debt
Your partner’s preferences and expectations
Long-term goals (like buying a home or paying off student loans)

Consider your financial situation and establish a budget for this big purchase. Then stick to it. Ideally, the ring you choose shouldn’t compromise your other financial priorities.

What Factors Affect the Cost of an Engagement Ring?

Whether you purchase online or in a brick-and-mortar store, if you’re opting for a diamond, it’s important to research the factors that affect the ring’s price. If you’re shopping for a diamond ring, the price hinges on the famous “four Cs”:⁹

Cut
How well the diamond is shaped to maximize sparkle. This is often considered the most important C.
Color
Graded D (colorless and most expensive) through Z (light yellow). Most untrained eyes can’t detect color differences in the G-H range, making it a smart place to save.
Clarity
Refers to internal flaws (inclusions) and external blemishes. Many flaws aren’t visible without magnification.
Carat
The diamond’s weight. Prices jump significantly at whole and quarter-carat marks.

Beyond the stone itself, the metal of the band affects the price, too. Platinum is the priciest of the popular options, while white gold offers a similar look at a lower cost. Yellow and rose gold sit comfortably in the middle. Once you’ve decided on the ring, there may also be a fifth “C” to consider—credit.

Paying for the Ring: The “Fifth C” Is Credit

How you pay for the ring matters. Cash gives you negotiating power and zero interest, but charging the purchase to a credit card has its own perks. That’s especially true if it’s a card with strong rewards or an introductory 0% annual percentage rate (APR) offer.

A zero-interest credit card offer may allow additional flexibility and breathing room in paying for the ring over time, as long as you can pay off the balance within the promotional period. Putting a large purchase on a rewards credit card may also help you earn points, miles, or cash back that you can use towards other upcoming purchases. A new credit card may even have a welcome offer that aligns with the amount you’re planning to spend.

For more on how introductory rates work, see our explainer, and check out our guide to financing an engagement ring, too.

Smart Strategies to Get the Best Ring for Your Budget

You don't have to compromise on style to stick to a sensible engagement ring budget. Here are some savvy moves to stretch your dollars further:

Buy Shy on Carat Weight
A 0.9-carat diamond looks nearly identical to a 1.0-carat diamond but can cost significantly less.¹⁰
Prioritize Cut Over Color and Clarity
A well-cut diamond sparkles even with minor imperfections invisible to the naked eye.
Shop Online and Compare Retailers
Online jewelers often offer lower prices thanks to lower overhead. You could also buy a diamond online at a great price and have a local jeweler set it.
Time Your Purchase Strategically
Black Friday, Cyber Week, and pre-Valentine's Day sales can offer real discounts.
Insist on Certification
Only buy diamonds graded by the Gemological Institute of America (GIA) or American Gem Society Laboratories.¹¹
Consider Lab-Grown or Alternative Stones
This could get you more carat per dollar. In 2025, a natural diamond ring in the 0.5 to 1.0 carat range cost an average of $6,307.¹² Meanwhile, a lab-grown diamond of the same carat weight averaged $3,453.¹³

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Frequently Asked Questions

The three-month salary ring rule is a guideline originating in a 1930s marketing campaign by a diamond company.¹⁴ It originally suggested spending one month of your income on an engagement ring, and over time, it increased to three months. There’s no financial or etiquette-based reason to follow it, and most modern couples set their budget based on personal savings, shared goals, and partner preferences instead.

$10,000 is well above the national average engagement ring cost of between $6,504 to $7,364, with only about 8% of American couples spending that much or more. However, whether it’s “a lot” for you specifically depends on your income, savings, debt, and other financial priorities.

There’s no fixed formula for how much you should spend on an engagement ring, but it may be smart to keep the ring purchase to an amount you can pay off quickly without disrupting savings goals or taking on long-term debt. The right number depends on your existing expenses, savings, and how you and your partner want to allocate funds across your wedding, honeymoon, and future plans.

The Takeaway

The average engagement ring cost in the U.S. is somewhere between $6,500 and $7,400, but the right number for you depends on your income, savings, priorities, and your partner’s style. Instead of relying on a decades-old marketing campaign to tell you how much to spend, consider your unique financial situation and whether money spent on this big purchase could detract from other goals. Smart shoppers focus on what they can comfortably afford and prioritize cut over carat. Some may even consider options like lab-grown diamonds to maximize value. Whether you spend $2,000 or $20,000, an informed approach is the most timeless choice of all.

^1,4,5 “Natural Diamond Trends: A 2025 Overview,” Natural Diamond Council

^2,8,10 “Here's the Average Engagement Ring Cost in 2025, According to Real Couples,” The Knot

³ “Median Usual Weekly Earnings of Full-Time Wage and Salary Workers,” Bureau of Labor Statistics (BLS)

^6,7,12,13 “The Average Engagement Ring Cost in 2025,” BriteCo

^9,11 “The 4 Cs of Diamond Quality,” Gemological Institute of America

¹⁴ “How Many Months’ Salary Should You Budget For an Engagement Ring?,” The Knot

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Kristina Russo is a CPA and MBA with over 20 years of business experience in firms of all sizes and across several industries, including media and publishing, entertainment, retail, and manufacturing.

All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.

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