The price of an engagement ring can vary widely based on dozens of different factors. From the diamond carat and clarity to the design and material of the band, how much you spend will depend on the kind of ring you want. However, this doesn’t necessarily tell you how much you should spend on an engagement ring. Many experts offer various ways of calculating how much to spend based on traditional methods, but these methods still may not fit your budget or your particular circumstances.
So, how much should an engagement ring cost? How much should you spend on an engagement ring based on your income and other factors? Finally, how can the type of diamond affect the price of an engagement ring?
In today’s guide, we will answer all of these questions and more, but first, let’s look at some of the most common calculation methods for choosing the right engagement ring price:
The Traditional Spend Calculation Methods
Engagement rings have been a tradition that goes back centuries. However, both the styles and prices of engagement rings have changed substantially over time. Fortunately, thanks in large part to the development of lab-grown diamonds, the cost of quality diamond engagement rings has not risen substantially. This means that most people with disposable income or available credit can get the ring of their choice without breaking the bank. In any case, let’s look at a few of the traditional methods for determining how much to spend on an engagement ring:
2 Or 3 Months Salary Rule
If you have ever asked jewelers, diamond experts, or even friends and family members about the cost of diamond engagement rings, you have probably heard about the 2 or 3 months salary rule. As the name implies, this rule of thumb suggests that you should spend between 2 and 3 months of your standard salary on an engagement ring.
To better understand this rule, let’s look at a specific example. Let’s say that your salary brings in approximately $5,000 per month after taxes. This would mean that you should spend between $10,000 (2 months) and $15,000 (3 months) on an engagement ring. While this may sound pretty high, you need to keep in mind that engagement rings are meant to be life-long investments that show your love for your future spouse. That said, you want to make sure that you don’t spend outside of your budget, so let’s look at a few other calculation methods.
Average Engagement Ring Cost
As of 2022, the average cost of an engagement ring rests somewhere around $6,000. However, this doesn’t mean that you need to spend that much. This number just reflects the average amount spent based on polls and jeweler records in 2022. This data includes plenty of engagement rings that cost less than $1,000, as well as rings that cost more than $20,000. Therefore, the average of $6,000 should just serve as a benchmark to know if you are spending roughly the same, less, or more than most other people buying engagement rings right now. It doesn’t necessarily tell you how much you should spend on one.
Average Diamond Carat Size
The average diamond carat size for an engagement is somewhere between 1 and 3 carats. At a minimum, you can usually expect to pay $2,000 per carat. So, if you want to spend less than $1,000 dollars, you will probably need to get a diamond that is 0.5 carats or less. Alternatively, if you know that you want a larger diamond, you can calculate the size you can afford using the $2,000 per carat method:
- 5 carats: $1,000
- 1 carat: $2,000
- 2 carats: $4,000
- 3 carats: $6,000
- 4 carats: $8,000
- 5 carats: $10,000
- 6 carats: $12,000
- 7 carats: $14,000
- 8 carats: $16,000
- 9 carats: $18,000
- 10 carats: $20,000
Keep in mind that these are just approximations and that, more often than not, these are just the starting prices for each carat size. The actual prices can vary based on the design of your ring, the vendor, and even the current market for diamonds. You may need to shop around to find a good deal if you are set on getting a specific carat size.
A Better Way To Calculate How Much To Spend
While all of the methods above can help give you an idea of what people spend on engagement rings, they may not help you with your situation. Therefore, the best method for calculating how much to spend is actually creating a realistic budget. With this budget, you can determine exactly how much you can afford to spend, as well as the ideal style and size you’d like to find. This way, you can use your finances to make a smart decision that meets your needs and your spouse’s expectations. Otherwise, you could end up spending more than you can afford or even buying a ring that your spouse doesn’t like.
It is also important to plan ahead when buying an engagement ring. In most situations, you have probably been dating for a while before deciding that you want to get engaged. This should give you time to start setting aside money for the engagement ring. In doing so, you ensure that you have a fund started to pay for the ring and you won’t have to go into debt just to show commitment to your spouse.
How To Keep Costs Down With Lab Diamonds
If you are unfamiliar with lab diamonds, they are diamonds that are created in a laboratory using manufacturing methods that mimic the processes that form diamonds in nature. As a result, they are visually and compositionally identical to natural diamonds. However, lab diamonds do not require the same labor costs, health risks, security risks, or scarcity issues as natural diamonds. As a result, lab diamond engagement rings are typically less expensive, despite the fact that they retain all of the same quality and brilliance as diamonds mined from the ground.
For example, natural diamonds must be mined from deep underground, often putting the health and safety of workers at risk. Once they are found, there are still many issues with the violence surrounding the natural diamond industry (giving rise to the name “blood diamonds”), resulting in even greater safety precautions and overhead costs for natural diamond procurers. Finally, these diamonds have to be shipped, cut, and then mounted on jewelry. By the time they end up in a jewelry store, the price is heavily inflated to make up for all of the aforementioned expenses.
Alternatively, a lab-grown diamond can be made in a lab (under the right conditions) nearly anywhere in the world. While there are still costs associated with the equipment and labor required, the process is still far less expensive, far safer, and far more environmentally friendly. Therefore, if you really want to keep costs as low as possible without sacrificing quality, you should choose an engagement ring made with a lab diamond.
We hope you found this guide on how much to spend on an engagement ring both useful and informative! Are you in the market for diamond jewelry? Do you want beautiful, certified lab diamond engagement rings at competitive prices? If so, be sure to check out the luxurious products available at Liori Diamonds today!