How Much Should an Engagement Ring Cost?

When you’re in the market for a ring, here are some things to consider:

Spending between one and three months’ salary for an engagement ring is a long-standing tradition.¹ But some millennials, who may be saddled with student loan debt and high costs of living—and who may have waited longer to get married—have thrown out this old rule of thumb. Instead, they may choose to reallocate those funds to experiences, like the honeymoon or the wedding.
 
Today, the average cost of an engagement ring is about $5,200, with about 33% of Americans spending less than $3,000. That national average is influenced by many factors, including region—for example, couples in the Mid-Atlantic tend to spend more than the average (around $6,900).¹
 
There’s no one-size-fits-all formula. How much you spend on an engagement ring is a very personal decision. Consider your current and predicted income, expenses, and savings, then establish a budget and stick to it. Don’t go into debt just to “keep up with the Joneses.” Of course, you’ll want to carefully consider input from your partner as well. 

To help you get the most for your money when buying an engagement ring, keep the following tips in mind:

Engagement ring spending statistics reflect how both younger generations and older couples who are remarrying are changing the dynamic of buying engagement rings.
 
People are getting married later, with more life experience and a more developed identity.³ As a result, they want greater originality in what they purchase, how much they spend, and how they buy. These expressions of individuality have manifested in several trends: unusual stones, settings, colors, shapes and styles. Some may choose to opt for sapphire, moissanite or lab diamonds because they are unusual, affordable, and sometimes more socially responsible (not “blood diamonds”).⁴ In fact, the lab-grown diamond market is expected to grow to $59.2 billion by 2032.⁵

The best way to buy an engagement ring is to be an informed purchaser. Whether you purchase online or at a brick-and-mortar store, if you’re opting for a diamond it’s important to do your research on the “four Cs”: Cut, Clarity, Color, Carat. And possibly on a fifth “C”—credit.
 
If you prefer to see and touch a purchase before pulling the trigger, the best way to buy may be from a:

You can also buy an engagement ring via online retailers instead of local jewelers. Many diamond websites allow users to search available stones based on their desired mix of the four Cs, and have setting-design features to help shoppers achieve the unique customized rings they seek. However, beware of bogus websites; reputable sites, such as Kay Jewelers, will be able to provide a Diamond Grading Report, such as one from Gemological Institute of America (GIA).^6,7 Reputable online jewelers will likely also offer a customer-friendly return policy.

Cash may provide more negotiating power with certain jewelers and, of course, allows you to sidestep any interest. But buying on credit does have its perks and doesn’t always have to mean paying interest on the balance. One payment option is a 0% APR credit card with an introductory promotional period that aligns with your ability to pay off the balance is another payment option. This scenario offers flexibility, gives you extra time to pay (as long as you meet the minimum payment each month), and the ability to pay extra whenever you can. As a bonus, taking this approach may also allow you to earn rewards or a welcome offer, depending on the card terms, since welcome offers may require you to meet a short-term spending threshold.