Aug 08, 2026

How Much Should You Spend on an Engagement Ring?

It is the question almost everyone asks first, and the one with the most outdated advice attached to it: how much should you actually spend on an engagement ring? You have probably heard the old rules, one month’s salary, two months’, three. Here is the honest answer, free of the marketing myths, so you can set a number that makes sense for you.

Forget the “two months’ salary” rule

Let us clear this up first, because it shapes how a lot of people think about budget. The “two months’ salary” guideline was not ancient wisdom or etiquette. It came from a diamond marketing campaign, designed to make you spend more. It is not a rule, it never was, and no one worth listening to will judge you by it. The right amount to spend is the amount that gets the person you love a beautiful ring without putting you under financial stress. That is the only rule that matters.

Start with what you can comfortably afford

Rather than working from a formula, work from your own situation. Set a number you can pay without going into debt or draining money you will need for the wedding, a home, or simply living. An engagement is the start of a life together, and beginning it with financial strain helps no one. A ring bought sensibly and loved for decades beats an expensive one that came with stress attached.

Where lab grown changes the maths

This is the part that genuinely rewrites the old budgeting advice. Because lab grown diamonds cost a fraction of mined stones for the same size and quality, your budget simply goes much further. The money that once bought a modest mined diamond can now buy a larger lab grown centre stone, a higher grade, or a more detailed custom design, and often with money left over. So the question shifts from “how much do I need to spend” to “how much ring can I get for a sensible budget,” and the answer is: a lot more than you think.

What actually drives the price

Within any budget, a few things move the cost. Carat weight is the biggest lever, and prices jump at the round numbers, so a stone just under a landmark size can look almost identical for noticeably less. Cut quality is where we would always spend first, because it is what makes a diamond sparkle. Colour and clarity matter too, though as we cover in our guide to the four Cs, you can often ease off slightly on those without seeing any difference by eye. And the setting, the metal and design, adds to the finished price on top of the stone.

Spend on what shows

The smartest budgets are not about spending the most, they are about spending where it counts. Prioritise cut so the ring is full of life. Choose a shape and setting the wearer will genuinely love. Lean on lab grown to stretch your money. And do not pay a premium for perfection that only a jeweller’s loupe can see. Get that balance right and a sensible budget produces a ring that looks anything but modest.

Find the right ring for your budget

The best ring is the one that looks like them and fits your life without stress. If you want a hand matching a stone and setting to a number you are comfortable with, that is exactly what we do. Browse our lab grown diamond engagement rings, every one IGI certified with its full specs and price listed, or reach out and we will help you get the most ring for your budget. If you are still deciding on the stone itself, our guide on lab grown versus natural diamonds is a good next read. We are Melbourne based and ship Australia-wide.