How Much Should an Engagement Ring Cost Guide 2024

Written by Nick Ireland, January 2024

Proposing to the love of your life is a once-in-a-lifetime opportunity. 

Everyone wants to make it unforgettable by presenting their partner with a gorgeous engagement ring. 

But how much should you spend to make an engagement ring ‘special’? Must you really put a price tag on love?

Engagement ring pricing is a confusing topic, so here’s a guide to help you out. 

We dispel some myths and give you an idea of how much Australians spend on engagement rings. 

Here’s a little secret: you don’t have to follow any rules, when searching for engagement rings for sale.

Two rings being held up and compared

What Is the Two-Month Rule, and Should You Follow It?

If you ask older relatives how much money you should shell out for an engagement ring, they might hit you with the two-month rule. 

According to this ‘standard,’ you should spend two months of your salary on your beloved partner’s engagement ring. 

While it’s not wrong to follow this rule, it’s not required!

The two-month rule isn’t rooted in any cultural tradition. It started out as a marketing strategy by the diamond corporation De Beers. 

They developed the concept in the 1930s during the Great Depression to salvage their business. 

At first, the company recommended a month’s worth but doubled it when people’s incomes rose. They also popularised the idea of using diamonds for engagement rings.

There’s no pressure to follow the two-month rule. 

You also don’t have to limit yourself to diamonds! Everyone has a different engagement ring budget, and it’s perfectly fine to spend more or less than others.

How Much Do Australians Spend on Engagement Rings?

Australians earn an average of $67,902 annually and spend an average of $5,367 on engagement rings. 

That means they allocate roughly a month’s salary when purchasing an engagement ring for their partner. 

You can use that data as a guide or create your own budget. Be realistic about what you can afford, ensuring you don’t go into massive debt. 

You don’t want to start your new life with your significant other with a financial burden. We can create an engagement ring you and your partner will adore without overstepping your budget!

When creating your budget for an engagement ring, it helps to think about your goals and priorities as a couple. 

Maybe you’d like to travel the world? Are you saving up for your first home? 

Consider how much you value an engagement ring compared to your other plans in life. 

What Factors Affect the Cost of an Engagement Ring?

Engagement rings are investments. But do you know what you’re paying for? 

Why are some engagement rings more expensive than others? 

Various factors affect the cost of an engagement ring, the largest one being the diamond you choose. 

It’s hard to come by high-quality diamonds, so the rarity drives prices up. 

These four things determine the cost of a diamond.

Diamond cuts


An expertly cut diamond will have a heftier price tag. 

There’s a lot of value in a diamond’s cut because it determines the look and shape of the stone. 

Most importantly, it’s what gives the diamond its brilliance! 

No one wants a diamond that refuses to sparkle. 

Cutting a diamond into perfect proportions requires the deft hands of an experienced stone cutter. 

GIA scale


Clarity is another trait that influences a diamond’s price. 

Most diamonds aren’t flawless. 

A closer look will reveal scratches, spots, and inclusions, bringing their prices down. 

That’s why diamonds with little to no imperfections have steeper price tags. 

They look cleaner and reflect light better, producing that sparkle brides find irresistible! 

An international grading system is used to determine a diamond’s clarity. 

This grading system goes from FL (flawless) all the way to I1, I2, and I3 (included). 

Multiple diamonds together


People desire white diamonds for their colourlessness. 

The D-Z colour grading system distinguishes colourless diamonds from those with a yellow or brown tinge. 

While the difference may not be noticeable to the untrained eye, a high colour grade boosts a white diamond’s value. 

As for coloured diamonds, the more saturated and even their colour, the more valuable they are.

You can expect the price to increase even more if it’s a rare colour, like red, blue, or pink.

Platinum example


As you can probably already guess, the larger the carat size of a diamond, the more money it will cost you. 

It’s harder to find large diamonds, explaining why they’re worth much more. 

But this is true only if they’re clear, beautifully cut, and have a high colour grade. 

It’s not worth having more carats if these other qualities are missing.

Aside from the quality of the diamond, the metal you choose will also affect the price of your engagement ring. 

The scarcer the metal, the more valuable it is. 

Because of its limited supply, platinum is generally more expensive than gold. Meanwhile, gold is pricier than silver. 

The purity of the metal will also influence the price. An 18ct gold ring will cost much more than an 8ct one.

Who Should Pay for the Engagement Ring?

Back then, every girl dreamt of their boyfriend kneeling before them with a ring box in hand. 

The guy will open it up to reveal a shiny diamond ring, and the girl will be completely shocked. 

Of course, the ring will be entirely the guy’s expense. 

But these days, more couples are veering from this tradition. 

Many prefer to choose the engagement ring together before the guy pops the question. 

And while most men will still shoulder the cost of the ring, more women are choosing to chip in. It makes sense if she’s earning enough and is willing to contribute. 

Also, many couples now live together before getting engaged, so splitting the bill is becoming more common.

So, who should pay for the engagement ring? 

There’s no one-size-fits-all answer to this. It’s all about what’s best for you and your partner. 

There’s no shame in doing something unconventional if it means getting to marry the love of your life!

Look at Quality Rather Than Price

Many people become too focused on price when choosing an engagement ring. 

They either go for an expensive one to impress their partner or an affordable one to save money. 

But instead of basing your purchase decision solely on the price tag, consider quality, too.

If you want an engagement ring you and your partner can treasure forever, it’s crucial to look at craftsmanship and quality of materials. 

Work with a reputable jewellery designer you feel comfortable with. 

Choosing careful craftsmanship over mass production will ensure structural integrity and durability. 

That also gives you access to professional maintenance that will help keep your engagement ring in pristine condition.

If you want a diamond that will continue sparkling for you through the years, pay attention to details like cut and colour. 

It also pays to invest in precious metals like platinum and gold. They can withstand scratches and bumps much better than cheap alloys.

 Your engagement ring will maintain its value and beauty when you go for expert design and high-quality materials.

Two diamond engagement rings laying next to each other

Should You Protect Your Engagement Ring with Insurance?

Engagement rings are one of life’s most significant investments. 

Not just financially but emotionally, too. Because it’s such a precious purchase, many wonder if they should get their engagement ring insured. 

We buy insurance for our houses and cars, so why not for this cherished symbol of love and commitment?

While it’s not a requirement, insurance definitely helps with peace of mind. 

Engagement rings are tiny. These rings can be easy to misplace, especially if you take the ring off when you’re out in public. 

So many other accidents can happen, like not feeling it fall off your finger or dropping it into the sink drain. It can even get stolen. 

Engagement ring insurance will protect you from financial loss if these unfortunate things occur. 

Insurance is an added expense but worth considering if you want to wear your engagement ring sans the anxiety.

In Australia, insurance is typically $1 to $2 for every $100. So, if your engagement ring is worth $5,000, you’ll have to pay around $50 to $100 in premium annually. 

But of course, the actual figure will depend on other factors like where you live, risk characteristics, and deductible. 

There are two ways to insure your engagement ring. 

One option is to purchase a home and contents insurance. That will protect the valuable items in your home, including your engagement ring. 

Jewellery insurance is the other alternative. It will cover repair or replacement costs of your engagement ring if you damage or lose it.