Are you trying to decide how much to spend on her engagement ring? It’s a tough question!
There are so many others who struggle with the same problem. The good news is that we’ve sold tens of thousands of engagement rings to people with the same problem. In this article, we created a groundbreaking calculator to tell you how much money to spend.
Click here to skip down to our advice on how much to spend on an engagement ring.
Engagement Ring Budget Calculator
EXCITING UPDATE: This Engagement Ring Budget Calculator has gathered quite a lot of fame across the internet. News Blaze, Evan Carmichael, Smarter Ware, and the University Chronicle have all written articles about this calculator.
Please note: This calculator generates a projected budget based on our 40+ years of experience in the market. The total budget is not a definitive scientific amount, but rather a ball-park figure. The data provided (without using any personal information) may be used in our engagement ring market research.
How much should you spend on an engagement ring?
Most people believe you should spend at least two months’ salary on your engagement ring. If, for example, you are making $60,000 per year, you should spend $10,000 on the engagement ring. See below for how we debunk this theory.
There are already a few payment “systems” that everyone uses to determine the “traditional amount” that couples should spend on their engagement ring. These “systems” have been pushed by big bloggers and jewelry websites when talking about budgeting for your engagement ring.
Our calculator (above) incorporates the positive parts of the famous budgeting schemes and rejects the parts that we feel are archaic. We have also added many more factors to make the calculations more accurate and personal.
Our hope is to eliminate this current out-dated budgeting systems and instead to create a tailor-fitted budget scheme that better fits each couple and their lifestyle.
Our calculator reinvents the answer to the famous budgeting questions. Hopefully, after using our calculator, no one will still ask, “How much am I supposed to spend on my engagement ring?”
CLICK HERE to read our research on the engagement ring statistics for the USA in 2024.
The Engagement Ring Budget Systems
As mentioned above, there are so many popular existing budgeting systems. They’ve made their way into popular culture and unfortunately the most toxic ones are the ones that won’t go. Here’s a breakdown of all the systems, including our opinion on what we think about them.
- Two Months Salary on Diamond Ring (Most Popular)
- Spending the Average Cost on Ring
- Purchasing the Average-Sized Diamond
1. Two Months Salary
The two-month salary payment system means spending two months of your salary on a ring. So, if your yearly salary is $45,000, you’ll spend $7,500 on your engagement ring.
This is the most popular system for calculating how much to spend on an engagement ring.
That being said, we, at Estate Diamond Jewelry, strongly discourage the “Two-Month Salary” system. This system doesn’t account for value, debt, assets, or lifestyle.
Pros: Extremely simple to calculate. This system almost feels like a tradition. For people with a small salary but many assets, they feel like they have an alibi to spend less.
Cons: The couple’s debts, assets, and expenses don’t figure into the budgeting plan. This system puts ridiculous pressure on the couple as if they have to meet a threshold.
Summary: The engagement ring is a personal gift for one of the most significant moments in one’s life. No one should be dictating a set price.
2. Spending the Average Cost on Ring
Based on our independent research, the average spend for an engagement ring so far in 2024 is approximately $6,100. Many factors have caused the price to rise in the past few years, but that is approximately where it currently holds.
For those who base their budget on the national average, they’d be shopping and trying to keep their budget within $100 of $6,100.
After the Two-Month Rule mentioned above, this system is without a doubt the second most popular method.
Your financial means should determine your budget rather than a worldwide average. No one should go into debt in order to pay off their engagement ring.
Pros: Extremely simple system. You will both feel that you got an engagement ring that is not below standards.
Cons: Most couples can not realistically afford to spend $6000 on a ring. Spending the average amount on an engagement ring will financially cripple couples for years. On the flip side, there are couples who would like to splurge on a beautiful, expensive ring and will feel stifled by the national average budget.
Summary: We strongly recommend picking a budget that is tailored to your personal requirements. Using a number generated based on the entire country is not suggested.
3. Purchasing the Average-Sized Diamond
There are those who want to calculate their budget based on the national average carat weight of the center diamond.
Based on our independent research, the average diamond size for shoppers in the USA is a little over 1.10 carats.
The average in the Commonwealth countries (UK, Australia, NZ, and Canada) seems to be approximately 0.70 carats.
Pros: It’s much easier to control the budget while remaining within the couple’s budget bracket.
For example, a 1.10 carat, round, D color, flawless diamond will cost approximately $19,000, and a 1.10, round J color, SI2 clarity diamond will cost approximately $4,200. They are both 1.10 carats, but the price varies dramatically.
Cons: This system will leave many people dissatisfied with their diamonds. Consumers also care about clarity, cut, and color. This budgeting method will greatly hamper the control of all the other details of the diamond.
Summary: This system doesn’t really enable one to control how much they’re spending.
What if I can’t afford to buy a ring?
If you can’t afford to buy a ring, don’t buy it. It’s that simple. The engagement ring may be a monumental item, but it’s not a good enough reason to go into debt. You can still propose without a ring.
Additionally, if you can’t afford to buy “your dream ring”, but you can afford to buy a cheaper diamond ring, just stick with what you can afford. There will always be plenty of time to upgrade your ring at a later date.
Summary: Don’t go into debt because of an engagement ring!
Tips to Keep Within Your Engagement Ring Budget
Here are a few simple tips when you’re ring shopping to ensure that you keep within your ring budget. Some of these are obvious, but based on our experience, some of them are not known at all!
- Negotiate with the Jeweler for a Discount. Don’t hesitate to bargain with the jeweler. Often, there’s a markup on jewelry, and jewelers expect some haggling, so you might get a significant discount. Here’s our guide to negotiating with a jeweler.
- Don’t Reveal Your Budget Immediately. Instead of telling the jeweler your exact budget straight away, give them a range. This prevents them from showing you rings that are just at the top of your budget, giving you more flexibility.
- Avoid Lab-Grown Diamonds. Although they are presented as a more affordable option, we believe that lab-grown diamonds are a massive scam. Be cautious and research thoroughly before making a decision.
- Buy a Diamond at the Bottom of a Bracket. Prices can jump significantly at certain carat weights (e.g., 1.5 carats). By choosing a diamond under these popular weights, like 1.49 instead of 1.51 carats, you can save a considerable amount without a noticeable difference in size.
- Search for Promo Codes Online. Before making a purchase, look for any available promo codes or discounts online. Many jewelers offer promotional discounts that can be applied at checkout.
- Buy During the Shopping Seasons. Jewelers often run significant promotions throughout the year. Plan your purchase around these times to take advantage of big savings.
- Compromise on Diamond Color and Clarity. While still ensuring the diamond looks good to the naked eye, choosing slightly lower grades in color and clarity can lead to substantial savings without compromising the gem’s beauty.
Remember, the allure of a perfect ring can be strong, but it’s crucial not to go over your budget unless your actual budget increases.
Engagement Ring Price Brackets
Once you determine how much to spend on an engagement ring, you will need to understand the pricing brackets. Although there are many formats, we’ve categorized the price bracket below.
Click here for engagement rings between $1,000 and $8,000.
For engagement rings between $8,000 and $11,000, click here.
Click here for engagement rings between $11,000 and $15,000.
For engagement rings between $15,000 and $20,000, click here.
Click here for engagement rings above $20,000.
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