How Much Should You Spend on an Engagement Ring?

When you’re in the market for a ring, here are some things to consider:

• How much you need to set aside for your wedding and honeymoon,
• Where you live—prices can vary widely,
• Your current and predicted income,
• Your savings and your other expenses,
• Your partner’s input—they may have their own ideas

Spending between one and three month’s’ salary for an engagement ring is a long-standing tradition. But millennials, generally saddled with student loan debt and high costs of living—and who may have waiteding longer to get married—have thrown out this old rule of thumb. Less than half of millennials spend two month’s’ salary.1 Instead, they often reallocate those funds into experiences, like the honeymoon or the wedding.

Today, the average cost of on an engagement ring is about $6,000, with about 33% of Americans spending between $1,000 and $4,000. And 8% of ring shoppers are spending under $1,000. That national average is influenced by many factors, including region—for example, couples in the Mid-Atlantic tend to spend more than the average (around $8,400).2 This tracks with a study that found New York City to boast the biggest average diamonds, at 1.45 and 1.29 carats, respectively.3

There’s no one-size-fits-all formula. How much you spend on an engagement ring is a very personal decision. Consider your current and predicted income, expenses, and savings, then establish a budget and stick to it. Don’t go into debt just to “keep up with the Joneses.” Of course, you’ll want to carefully consider input from your partner as well. For example, 54% of women say the ring style is the most important factor, not the price,4 however, this may not hold true for everyone.