Engagement Ring Buying Guide

Let's talk finances

How much should you spend on an engagement ring?

There are several factors to consider when deciding how much to spend on an engagement ring, so let’s first look the most recent average engagement ring cost data. According to a 2020 study conducted by The Knot, the average proposer spends approximately $5,500 on an engagement ring. While this typical price varies significantly based on where you live, it's useful to know how much most consumers spend before you start planning your own budget.

Factors that impact engagement ring cost

Before you start looking for engagement rings, it's a good idea to set a budget. This way, you won't be looking at rings that are outside (above OR below) your price range. But what exactly determines how much an engagement ring is worth? Let's look at some factors that affect engagement ring cost.

If you're looking for a diamond engagement ring (which a vast majority of people do), it's critical to understand the 4 C's—color, cut, clarity, and carat—which can all have a significant impact on a ring's price. The Gemological Institute of America (GIA) or The American Gem Society (AGS) are the largest institutions for diamond certification. The grades or certifications from the GIA or AGS play a large part in determining the quality and therefore the value of a diamond.

Diamond Carat Weight

Diamond carat is an often-misunderstood term. It refers to the weight of a diamond rather than its size. Another myth is that a bigger carat weight is always superior to a smaller carat weight. Bigger isn't always better! Carat weight has nothing to do with brilliance. A well-crafted cut produces beautiful glitter. In fact, a diamond with a high carat weight and a poor cut may appear smaller than a diamond with a lower carat weight and a very good cut.

Learn about carat weight

Diamond Color

It's not the color of a diamond that makes it more valuable, but rather the lack of color. The higher the value and grade of a diamond, the more crystal-clear and colorless it is.

Learn more about color

Diamond Cut

The cut, or shape, of a diamond can determine its price. Round diamonds, for example, require more labor to produce and hence cost more—but they are also the most popular cut!

Learn more about cut

Diamond Clarity

The assessment of minor defects on the surface and within the stone is known as diamond clarity. Surface imperfections are referred to as blemishes, whereas inside flaws are referred to as inclusions. In most circumstances, these have little effect on the beauty of a diamond because most inclusions are invisible to the naked eye. The fewer and smaller the inclusions within a diamond, the higher the clarity grade and the greater the price.

Learn more about clarity

Bonus tip

When should you actually buy the engagement ring?

Our opinion? You shouldn’t wait until the last minute! (that’s for sure). Surveys have shown that a majority of engagement ring buyers start researching and shopping more than five months ahead of the proposal date (use this as a good rule of thumb).

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As far as the actual purchase, that usually occurs within the final two months before the proposal date (roughly 70% of proposers followed this time frame). Now if you’re planning a surprise proposal, make sure you have a good hiding spot ahead of time!