How Much Should You Really Spend on an Engagement Ring

So, you're ready to buy an engagement ring, but then comes the question that stops many in their tracks: How much should I actually spend?

You're not alone if you've Googled this at 11 pm or nervously floated it past a friend (only to get wildly different answers). This question taps into a whole mix of emotions, excitement, hesitation, maybe even a little sticker shock.

The truth? There’s no single “right” number. The cost of an engagement ring depends less on some outdated formula and more on your values, budget, and the story you want the ring to tell.

We’re here to unpack the reality behind engagement ring cost from cultural myths to current spending trends, from jeweller insights to the financial factors that matter most. 

Where Did the “Three-Month Salary Rule” Even Come From?

Let’s be clear: your grandma didn’t invent it, a clever ad agency did.

De Beers invented the “you should spend three months’ salary on an engagement ring” idea in the 1940s. It was part of a wildly successful marketing campaign that stuck around longer than it probably should have.

But here’s the thing: modern couples? They’re not buying into it.

What Engagement Ring Costs Looks Like Today

In Australia, most people spend between $5,000 and $7,500 on an engagement ring. But plenty go under $3,000, and some go way beyond. The gap isn’t about status, it’s about personal priorities.

More couples are customising their rings or opting for vintage or heirloom rings, which can offer the same sparkle with a very different price tag. 

It’s not all about carats. Couples are thinking about design significance and what the ring represents, not just the cost.

5 Questions to Ground Your Engagement Ring Budget

Before you lock in a number, pause and ask yourself these five questions. They're about clarity, comfort, and what matters most to you.

1. What Feels Comfortable Financially?

Your engagement ring cost shouldn’t leave you stressed or stretching beyond your means. Forget the salary rules. Start with your actual financial situation, specifically, your disposable income, not your full salary.

A ring should celebrate your love, not sideline your savings or drag you into debt.

2. Are You Making This Decision Together?

Gone are the days of guessing ring sizes in secret. More couples are chatting openly about budget, design, and expectations, and it’s a game-changer. Why?

• It builds trust

• Cuts down guesswork

• Sets up a healthier financial future

Talking about the ring before the proposal isn’t unromantic; it's practical, respectful, and increasingly normal.

3. Will You Save, Finance or Pay Upfront?

There’s no one-size-fits-all here; each path has its pros and cons.

• Saving gives you more control and less long-term cost

• Financing can work, but only if the terms are crystal clear and within reach

• Paying upfront? Some jewellers offer perks or price advantages

Choose what aligns with your comfort zone, not just your wishlist.

4. Have You Thought Beyond the Price Tag?

The initial engagement ring cost is just the start. Don’t forget potential add-on costs:

• Resizing

• Professional cleaning

• Annual valuations

• Insurance

Our specialist jewellery insurance includes annual revaluations and up to 50% of the sum insured to help offset future price jumps, which can be used at the discretion of the insurer.

5. What Would Make It Feel “Right”?

Some people fall in love with vintage rings full of family history. Others want a custom design with personal meaning. For many, it’s about ethical sourcing or the feeling they get when they see it on their partner’s hand.

There’s no universal formula. The “right” engagement ring is the one that feels meaningful to you both, no matter the cost.

Breaking Down What an Engagement Ring Really Costs

Where does your money go when buying an engagement ring? Let’s lift the lid on what you’re paying for and what affects that final price tag.

The Centre Stone

For most rings, the gemstone, usually a diamond, makes up the bulk of the engagement ring cost, sometimes 70–80%.

Key factors that impact the price:

• Carat weight (more carats = more dollars)

• Cut quality (how well it sparkles)

• Colour and clarity (how white and clean it looks)

• Certification (trusted grading from GIA or IGI, for example)

Diamonds aren’t her thing? Check out our blog with 10 Diamond Alternative Engagement Rings.

The Setting

This is the part that holds the diamond, and it’s more than just a frame. Depending on your choices, it can cost anywhere from $1,000 to $5,000+.

Factors that affect the setting cost:

• Metal choice (platinum costs more than 14k gold)
• Design details (halo, pavé, vintage-inspired, etc.)
• Customisation (one-of-a-kind work adds labour and craftsmanship time)

Why Specialist Jewellery Insurance Could Make a Real Difference

An engagement ring might hold significant value, but its meaning often runs deeper than dollars, which is why it may be worth considering specialist engagement ring insurance.

Home insurance might include some jewellery coverage, but it could also come with limitations, such as:

• Per-item value caps

• Exclusions for international travel

• No option to work with your original jeweller for replacement

With Q Report’s jewellery insurance, you get features explicitly designed for high-value, meaningful pieces:

• Worldwide cover, whether you're at home or on holiday, subject to policy terms, conditions, and exclusions

• Annual revaluation to keep your insured value in step with the market

• The ability to return to your original jeweller for repairs or replacement

• Up to 50% of the insured value if the market cost exceeds your sum insured, when required and approved

Reflect Before You Buy: What Does the Ring Really Represent?

Before you commit to a number or a diamond, pause and think about the bigger picture.

Ask yourself:

• What story do I want this ring to tell? Is it about family tradition, a shared memory, a future promise, or something entirely your own?

• Does the cost reflect our priorities as a couple? Are you spending to impress, or choosing a ring that feels right for your values and lifestyle?

• Am I making space in our budget for what comes next? Consider how this purchase fits into your long-term plans whether that’s a wedding, honeymoon, house deposit or building a financial safety net.

When deciding how much to spend on an engagement ring, there is no universal answer, but there is a right answer for you.

The best engagement ring isn’t the most expensive. It’s the one that fits your relationship, your budget, and your future plans as a married couple or family. It’s a meaningful choice, not a financial test.

Whether you’re working with a modest engagement ring budget or exploring more bespoke options, taking time to reflect helps ensure your purchase is intentional, not impulsive.

Your Ring, Your Rules: Making a Decision That’s Yours Alone

Choosing an engagement ring is deeply personal, but in a world where comparison-itis can run rampant, it’s easy to feel like there’s a standard you’re supposed to meet.

But here’s the truth: there is no standard.
There’s no fixed amount you should spend.
No universal definition of value.
No right or wrong way to honour your relationship.

What matters most is that your decision reflects what’s meaningful to you. Whether you prioritise craftsmanship, sentimentality, sustainability or simply want something beautiful and thoughtful within your means, your engagement ring value is defined by more than price.

If you're navigating how to choose an engagement ring or how much to spend, focus on clarity over comparison. Intentionality over expectation.

If covering your ring is part of your plan, Q Report is here to support that choice, not just with features like annual valuations and worldwide cover, but with a deep understanding of how emotionally significant this piece really is.