What Are Australians Spending on Engagement Rings?

Deciding how much to spend on an engagement ring can be challenging, especially considering the average cost. If you're feeling lost in the nuances of engagement ring pricing, you're not the only one.

While the outdated guideline of spending a month's salary doesn't align with the current average engagement ring price in Australia, setting a budget is crucial. It helps narrow down your choices in a jewellery shop brimming with options and ensures you stay in control.

Considering factors like the average cost and how much others are spending on engagement rings can guide your budget. This article delves into the typical engagement ring costs in Australia, global spending trends, quality indicators for diamonds, and how to find the best ring within your budget.

Average Engagement Ring Cost in Australia

According to the latest Easy Weddings 2025 Australian Wedding Report and data published by Jewellery World, the average amount spent on an engagement ring in Australia is $5,854. This aligns closely with what many jewellers are seeing in store, though the figure can vary widely depending on city, style and stone.

Nicola Cerrone of Q Certified Jeweller, Cerrone Jewellers, notes that social and cultural trends are influencing spending habits:

“Social media has put significant pressure on what is expected from a ring and is pushing people to spend a bit more than they would have a few years ago,” she says.

The influence of high-profile celebrity engagements can’t be ignored either. In 2025, Taylor Swift’s reported engagement ring, featuring an old mine-cut diamond and custom gold band, was estimated between US$1 million and US$1.5 million (A$1.54m–A$2.3m). Zendaya revealed a vintage-inspired piece likely worth in the mid-six to seven-figure range, while Dua Lipa opted for a bold custom gold band set with a 2-carat diamond, also valued in the six figures. These examples sit far above the national average, but they shape consumer expectations and trends nonetheless.

For everyday Australians, context matters. The median annual income for full-time workers in 2025 is estimated at $88,400–$90,000 AUD, or about $7,350 per month. If you applied the traditional “three months’ salary rule,” that would suggest spending close to $22,000–$23,000 on a ring — a figure that simply doesn’t reflect what most couples choose.

In reality, the majority of Australians spend between $5,000 and $15,000, with the national average of $5,854 sitting comfortably within that range. Of course, there are outliers — from understated solitaires around $1,000 to bespoke creations well over $100,000 — but the mid-range remains the most realistic benchmark for most buyers.

Key Takeaways:

• In 2025, Australians spend an average of $5,854 on engagement rings.

• Median income would suggest a far higher “salary rule” figure, but most couples ignore it.

• Spending is typically in the $5,000–$15,000 range, depending on style, city and personal preference.

• Celebrity pieces (Taylor Swift, Zendaya, Dua Lipa) influence trends but sit well above the national average.

What Does the World Spend on Engagement Rings?

When it comes to engagement rings, spending habits vary dramatically around the globe. In 2025, the global average spend is estimated between US$5,500 and US$6,500 (A$8,600–A$10,300).

Some regions consistently spend more:

• United States: The national average in 2025 is US$6,527, with higher-spending states such as California, Washington and Illinois often reaching US$8,000–US$10,000+.

• Hong Kong and Switzerland: Both markets report averages above US$6,000 (≈AUD$9,500), reflecting strong demand for bespoke, high-quality natural diamonds.

• Australia: Closer to home, couples spend slightly less on average.

While cultural traditions, income levels and currency differences all play a part, these numbers highlight a consistent theme: engagement rings remain one of the most significant jewellery purchases most people will ever make.

TL;DR: Global Engagement Ring Spending (2025)

• Global average: US$5,500–6,500 (A$8,600–10,300).

• US: US$6,527 national average; some states exceed US$10,000.

• Hong Kong & Switzerland: Consistently above US$6,000.

• Australia: Lower than global hotspots.

Average Engagement Ring Cost by Australian State

Not only do engagement ring prices vary from country to country, but they also run the gamut from state to state, right here in Australia. In the following table, you’ll see the average prices of an 18ct white gold solitaire with a weight of 4.70 grams. 

As you can see, oval diamond solitaires cost less than their round counterparts, even for the same weight and precious metal. Why? Let’s explore below.

Engagement Ring Cost By Australian State

• Engagement ring prices differ across Australian states and are influenced by factors like diamond shape.

• Oval diamonds tend to cost less than round diamonds of the same weight and metal.

Diamond Shapes and Pricing

The diamond’s shape is a critical consideration because it directly influences price. For example, the most popular diamond shape, round brilliants, tends to cost more than other shapes (fancy shapes) due to market demand, increased manufacturing costs, and their unmatched brilliance.

Market Demand

A perennial favourite, the brilliant round diamond never goes out of style. Regardless of current trends, it always seems on point with whatever precious metal or setting style fits the zeitgeist. And high demand leads to higher prices.

Increased Manufacturing Costs

Round brilliant diamonds are the most expensive per carat because they require removing the most amount of raw material from the rough. On top of that, they also require the most skill in cutting, so labour costs are high. In contrast, an oval or emerald cut diamond makes better use of the rough stone as the cutter removes less material. 

Unmatched Brilliance

In a diamond, the internally and externally radiant light determines a diamond’s brilliance. Low-quality diamonds appear lifeless because they don’t reflect light well. Of all the common diamond shapes, the round brilliant, with its 58 facets and distinctive proportions, reflects the light most dazzlingly.

TL;DR Diamond Shapes and Pricing

• The shape of a diamond directly impacts its price due to market demand, manufacturing costs, and brilliance.

• Round brilliant diamonds are more expensive due to high demand, increased manufacturing costs, and unmatched brilliance.

The 3-Month Rule

Now you know about how different shapes affect price, and you know that local markets also have an impact. But you still need to bring the question close to home: what’s the right-size budget for your engagement ring purchase?

In the 1930s, the marketing masters at De Beers created the idea that one months’ salary was the magic number for an engagement ring. Sometime in the 1980s, this grew to two months’ salary, and today’s supposed standard lies somewhere around the three-month mark. 

To some people, a $25,000 engagement ring might seem out of reach even if they earn an annual wage of $100,000. To others, a $30,000 engagement ring is the investment they choose, even while making an annual wage of $60,000. The point is, don’t let a preconceived notion of what is the ‘right amount’ dictate your financial actions. You’re the one who has to live with your expenditures.

TL;DR The 3-Month Rule

• The traditional "3-month rule" for ring spending is outdated and shouldn't dictate personal choices.
• Personal financial circumstances and preferences should guide the decision.

What Should You Spend on an Engagement Ring?

So what is the ‘right price?’ Is there one at all? Again, that all depends on you. Ask yourself: 

• How much am I willing to pay to buy a high-quality, genuine diamond that my partner will cherish forever?
• Do the quality, origins and size of the stone mean much to me? What will they mean to my partner?
• What do my financial circumstances allow for? If I save for another six or twelve months, will I be able to afford the ring I truly want to give my partner?
• What style of engagement ring best suits my partner’s lifestyle and personality?

TL;DR Determining the Right Price for an Engagement Ring

• Consider personal factors like the desired quality, size, and style of the ring, as well as financial circumstances.

What to Look for in a Quality Engagement Ring

You might have a generous budget of $20,000 for your engagement ring, but without a good understanding of diamond quality, you may not get the best bang for your buck. 

Every buyer should learn at least the fundamental indicators of diamond quality, the 4cs:

• Cut

• Colour

• Clarity

• Carat

The 4cs are a great place to start your research, but several other factors impact the overall quality and cost of your ring, including:

• Ring metal

• Diamond setting

• Diamond shape

Engagement Ring Quality Indicators

Understand the 4Cs (Cut, Color, Clarity, Carat) and other factors like ring metal, setting, and diamond shape.

Another factor that affects engagement ring prices is the diamond’s origin. 

Diamonds are made of billions of carbon atoms, and each carbon atom is firmly bonded to four others, making diamonds the hardest known natural substance. Whether they originate deep within the earth or in a laboratory, all diamonds have the same chemical properties and molecular structure. But natural stones have a long, unique history.

Natural stones originate at depths of over 120km, through acute heat of between 900°C and 1300°C and pressures of 45 kbar and above. The miraculous process takes millions of years; eventually, the carbon molecules crystallise and become transparent. Then they travel up to the earth’s crust, mined in various parts of the world.

Because of their rough-and-tumble journey, natural stones have flaws, called inclusions. You might be surprised to hear that lab-created diamonds can and do have inclusions as well. Laboratories simulate the natural processes that the earth uses to create diamonds, so inclusions still occur due to extreme heat, pressure and individual growth patterns.

One of the biggest differences between natural and lab-created diamonds in 2025 is price. While they share the same molecular structure, lab-grown stones now sell at a steep discount compared to natural diamonds.

• Lab-grown diamonds: A 1-carat stone typically costs AUD$1,200–AUD$3,000

• Natural diamonds: The same size often ranges between AUD$6,000 and AUD$13,500

That means lab diamonds are often 70–90% cheaper than their natural counterparts. Industry analysts note that lab diamond prices have continued to fall due to rapid growth in supply, creating strong price compression.

It’s also worth considering long-term value. While natural diamonds tend to retain resale value, lab-grown stones generally do not, which influences how buyers perceive their worth beyond the initial purchase.

Key Takeaways: Natural vs Lab-Created Diamonds

• Both share the same molecular structure.

• In 2025, lab diamonds are often 70–90% less expensive than natural diamonds.

• A 1-carat lab stone costs AUD $1,200–3,000 vs natural AUD $6,000–13,500.

• Lab-grown diamonds generally do not retain resale value, unlike natural stones.

Thinking About Cover for Your Engagement Ring

Whether you spend a few thousand dollars or tens of thousands, an engagement ring usually carries far more than financial value — it becomes part of your story. Once you’ve chosen the right ring, it’s worth thinking about how you’ll look after it long term.

Some couples consider specialist jewellery insurance, which may provide cover for events such as loss, theft or accidental damage, subject to the policy terms and conditions. With Q Report, for example, cover can also include features such as worldwide cover and the option to return to your original jeweller for repairs or replacement.

When the time comes to find your perfect ring, it’s worth considering not just the design and diamond, but also how you’ll keep it covered for the years ahead.