An engagement ring is one of the most exciting purchases of your life - until you look past the sparkles, and the sticker shock hits. Then come the questions: How much do I need to spend on an engagement ring? What is the average cost? Why do some diamonds cost so much more than others? And does it even have to be a diamond at all?

The short answer is that engagement rings can cost as little as $1,000 to well over $20,000, but that leaves a lot of room for confusion in between. That’s why we’re here to debunk myths around engagement ring shopping and help you figure out what you can actually get for your money. At Sarah O., we’re proud to create engagement rings at a wide range of price points. Because no matter your budget, everyone deserves something beautiful.

A romantic flat lay of The Charlotte Pear, The Harlem, The Nova Round, The Monroe, and The Angie

Average engagement ring costs

According to a study from the Knot, the national average engagement ring cost in 2024 was $5,200. But averages don’t tell the whole story, and big-budget rings skew the numbers higher. 

Here’s some more findings from the same study:

- Nearly two-thirds of couples spend under $6,000 on an engagement ring

- One-third of couples spend less than $3,000

- About 5% of respondents said their budget was over $15,000 

The Lara is proof that simple can still sparkle—available in multiple sizes to suit your story.

What about the three-month salary rule?

Popular wisdom says that engagement ring shoppers should plan to spend three months’ salary on the ring. So according to this rule, if you bring home $4,000 a month, your ring budget should be $12,000. 

With rising housing costs, expensive weddings, and inflation, this guideline is not only unrealistic—it’s straight up archaic. Your ring budget is highly personal, with many factors to take into consideration besides your salary.

The three-month rule first appeared in the 1930s, in an advertising campaign by De Beers diamonds. The campaign said that men should spend one months’ salary on an engagement ring, with the goal of boosting De Beers’ business. That number later increased to a two-month rule, then three. 

According to the BBC, diamonds were not a popular engagement ring choice prior to the campaign, with only less than 10% containing diamonds. The De Beers campaign was so successful that by the end of the 20th century that number had increased to 80%.

If the three-month rule appeals to you, and it fits your finances, there’s nothing wrong with splurging on a ring you’ll love for the rest of your life. But if you’re still not sure how much to spend, read on for more tips to help determine your budget.

The Sage proves that a bold marquise cut can still feel effortlessly romantic.

How to find your ring budget

Consider your personal budget

If you don’t have a budget, now is a great time to whip out a pen and paper or make a spreadsheet. Assess your personal financial situation, starting with your current and predicted income, savings, and monthly expenses. 

If you aren’t ready to spend the money on a ring right now, make a plan for setting aside a certain amount of money every month, or look into a payment plan.

Discuss it with your partner

While engagements are traditionally kept a complete surprise, many modern couples are breaking the mold. From talking finances, to shopping together or designing custom rings, there’s a range of ways for your partner to be involved. Even if you pick out the ring together, the engagement can still be a complete surprise. 

Plus, it’s always a good idea to discuss big financial purchases with your partner. You’ll be spending your life together, so now is a great time to get on the same page.

Consider your wedding budget

You might be years away from planning a wedding, but the engagement ring is the first wedding cost you’ll have. A large gathering might eat into your engagement ring budget, while planning a micro-wedding can let you splurge on a ring.

Plan for other major life expenses

You and your future spouse might be saving for a down payment, a big purchase like a car, or plan on prioritizing travel. If large expenses are coming your way, it may make sense to pull back on your ring budget. 

The Charlotte Pear Engagement ring proves timeless elegance never goes out of style.

How to maximize your ring budget

Consider future upgrades

Your first ring doesn’t have to be forever, it just has to work for you right now. Many couples start with an affordable engagement ring, then upgrade it down the line. That could look like a larger center diamond for a milestone anniversary, or choosing a more intricate setting. You could also add a new ring to your stack to enhance the look of your engagement ring.

Learn your 4 C’s

Cut, clarity, color, and carat are the four measurements by which diamonds are graded and priced. By understanding the ins and outs of the 4 C’s, you’ll learn what to prioritize when shopping for diamonds. 

For example, if having a larger carat weight is most important to you, you might choose a diamond that’s lower on the clarity scale. Or, you might choose a well-cut diamond that’s on the smaller side. Warm-tinted diamonds are graded lower for color, so if you choose a gold setting, you can get away with a warmer diamond. Learn more about the 4 C’s with our complete guide.

Consider lab-grown diamonds

While Sarah O. sources both lab-grown and mined diamonds, all diamonds are carefully selected so you can be confident in your choice of stone. 

Lab-grown stones are chemically identical to diamonds, but much more affordable, while natural-grown diamonds retain their value over time. Like natural diamonds, lab diamonds are measured in total carat weight and evaluated based on the 4 C’s. 

Think beyond the diamond

There’s a whole world of beautiful and meaningful gemstones to explore for your center stone. From sapphires to amethysts and beyond, see if a gemstone engagement ring works for your budget.

Design a custom ring

An experienced jewelry designer can create a one-of-a-kind ring that’s perfectly curated to your tastes. They can also help to source stones that fit your budget. Book a consultation to see how your vision can come to life.

Look into payment plans

If your budget doesn’t fit your timeline, many local and online jewelers offer flexible financing options. This can help break up the cost of the ring into more manageable chunks.

Beautiful engagement rings for all budgets

Once you’ve decided what you’re comfortable spending, it’s time for the fun part: shopping. Keep reading for some of our favorite rings at a wide range of price points.

The Mini Charlotte Round Solitaire: $1,220

Named after Charlotte Bronte, author of Jane Eyre, the Mini Charlotte Ring is perfect for lovers of dainty diamonds. It features a .50 ct round lab grown diamond set in 14k yellow gold, while a beaded texture around the stone adds a delicate touch.

The Maren Marquise Montana Sapphire Solitaire: $5,390

Commemorate your love story with an unforgettable twist on classic engagement ring silhouettes. The Maren Ring features a one-of-a-kind 1.94 ct marquise champagne Montana sapphire with a high-polish 14k gold halo for a unique and timeless look. 

The Ray Old Mine Cut Oval Diamond Ring: $14,749

Meet the Ray Ring, inspired by the warmth and beauty of the sunburst motif made popular during the Art Deco era. It features a 1.11 ct old mine cut oval diamond, an antique but timeless cut, surrounded by a 1.22 ct oval, pear, and round diamond halo.

At Sarah O., we believe every love story deserves to shine, which is why our focus is on attainable luxury. Explore our full catalog of rings to find something beautiful for your budget.

Purchase your engagement ring with confidence

Choosing an engagement ring is going to be different for every couple. Many factors can contribute to the cost of the ring, from materials, to the quality of the gemstones, to the complexity of the design. 

The most important factor in the equation is you: your budget, your financial goals, and your personal style. Whether you’re waiting to stumble on the perfect ring, or are ready to create a custom piece, we can help make your dream ring a reality.

To learn more about engagement rings of all kinds, check out the Sarah O. blog!