Choosing an engagement ring is one of the most exciting purchases you’ll ever make, and one of the most common questions we hear is how much you should spend. The honest answer: there’s no single right number. The best engagement ring is one your partner will love and that you can buy without stress.
In this guide, we look at the rules of thumb, what affects the price of a ring, what different budgets can get you, and how to make your money go further.
Overview:
How Much Should You Spend On An Engagement Ring?
What Affects The Cost Of An Engagement Ring?
How To Get More Sparkle For Your Budget
How To Save For An Engagement Ring
How Much Should You Spend On An Engagement Ring?
You’ve probably heard that an engagement ring should cost two or even three months’ salary. These rules started as diamond advertising campaigns in the 20th century, not as financial advice. Today, most couples set a budget based on what feels comfortable for them.
To put the old rules into perspective, Australian full-time adults currently earn an average of $2,083.70 a week, about $108,000 a year (ABS, May 2026). Two months’ salary would be around $18,000, and three months closer to $27,000. In reality, Australians spend far less. The average engagement ring costs $5,854, according to the Easy Weddings Australian Wedding Industry Report 2025. That’s less than three weeks of average full-time earnings.
When setting your budget, think about:
- Your savings and other costs. If you’re planning a wedding, a honeymoon or a home deposit, factor those in too.
- Your partner’s style. A simple solitaire and an elaborate halo design can sit at very different price points.
- What matters most to you. Some people want the biggest diamond possible, while others care more about the metal, the shape or the design.
Spending within your means is the most important rule. A ring bought without financial pressure will always feel more special.
What Affects The Cost Of An Engagement Ring?
The price of an engagement ring comes down to a few key factors:
- The 4Cs: cut, colour, clarity and carat weight determine a diamond’s value. Carat weight usually has the biggest impact on price. Learn more in our Diamond Guide.
- Natural or lab-grown:lab-grown diamonds are real diamonds created in a laboratory rather than mined. They generally cost less than mined diamonds of the same size.
- The metal: sterling silver is the most affordable, followed by 9ct gold, with 14ct and 18ct gold at the higher end.
- The setting: a solitaire uses one main stone, while halo, trilogy and pavé designs add extra diamonds and extra cost.
- The stone: diamonds aren’t the only option. Sapphires, morganite and other gemstones can offer a pop of colour at a range of prices.
Engagement Rings By Budget
There’s an engagement ring for every budget, and spending more doesn’t always mean a better ring. Here are some of our favourite engagement rings at different price points.
Under $500
You don’t need to spend big to get real diamonds. This sterling silver bridal set includes an engagement ring and a matching wedding band, and it’s our best-selling bridal set.
1/4 Carat Diamond 2-Ring Bridal Set in Sterling Silver
$399.00
$1,499.00
f you are thinking of popping the question, then what better way to do it then with this stunning ¼ Carat Diamond Ring. Made from hypoallergenic sterling silver and embellished with a quarter carat of brilliant cut diamonds, this ring… read more
Luminesce Lab Grown 1/4 Carat Diamond Pear Ring in 9ct Yellow Gold
$499.00
$1,499.00
Luminesce Lab Grown 1/4 Carat Diamond Pear Ring in 9ct Yellow Gold… read more
$500 to $1,000
This range opens up classic solitaires and three-stone designs. Lab-grown diamonds help your budget go further, giving you more carat weight for your money.
Luminesce Lab Grown Sterling Silver 2 Carat Diamond Trilogy Ring
$999.00
$2,999.00
Luminesce Lab Grown Sterling Silver 2 Carat Diamond Trilogy Ring… read more
Luminesce Lab Grown 3/4 Carat Diamond Solitaire Ring set in 14ct White Gold
$799.00
This 14 carat white gold solitaire ring is a stunning piece of jewellery that exudes elegance and sophistication. The ring features a gorgeous 3/4 carat lab-grown brilliant cut diamond that has been carefully set into a six prong setting. The… read more
$1,000 to $2,000
The sweet spot for many couples. Here you’ll find a carat of sparkle, halo settings and solid gold bands. Our oval halo ring is this year’s most popular engagement ring.
Luminesce Lab Grown 1 Carat Diamond Oval Halo Ring in 18ct White Gold
$1,499.00
This Luminesce Lab Grown Diamond Oval Halo Ring is set in 18ct white gold, with an oval cut lab grown diamond at the centre weighing 0.70 carats, GH colour and SI/P1 clarity, surrounded by a halo of smaller diamonds for… read more
9ct Yellow Gold Diamond Ring Set With 7 Round Diamonds
$599.50
$1,199.00
Thinking about popping the question? Why not say it all with this exquisite 9ct Yellow Gold Diamond Ring featuring seven brilliant-cut round diamonds. Arranged in a star tetrahedral shape, it’ll definitely take their breath away.… read more
$2,000 to $5,000
This budget brings bigger centre stones and premium settings, from a 1 carat Australian diamond solitaire to a 2 carat oval solitaire.
1 Carat Australian Diamond Solitaire Ring in 9ct Yellow Gold
$2,499.00
$5,999.00
1 Carat Australian Diamond Solitaire Ring in 9ct Yellow Gold … read more
Luminesce Lab Grown 2 Carats Diamond Oval Solitaire Ring in 9ct Yellow Gold
$3,499.30
$4,999.00
Luminesce Lab Grown 2 Carats Diamond Oval Solitaire Ring in 9ct Yellow Gold… read more
Browse our full range of engagement rings to see more styles at every price point.
How To Get More Sparkle For Your Budget
Want your ring to look bigger and brighter without spending more? Try these tips:
- Consider lab-grown diamonds. They have the same sparkle and hardness as mined diamonds, and generally cost less for the same size.
- Choose an elongated shape. Oval, pear and marquise shapes often look larger than a round diamond of the same carat weight.
- Add a halo. A frame of smaller diamonds around the centre stone adds sparkle and makes the whole ring look bigger.
- Look at 9ct gold. It’s more affordable than 18ct gold and harder-wearing, which makes it a practical choice for a ring worn every day.
- Buy just under a round number. A 0.9 carat diamond looks almost identical to a 1 carat diamond, but usually costs less.
Payment Options
If you’d rather spread the cost, Grahams offers a range of payment options, including Afterpay, Zip, Humm, Klarna and Latitude interest-free finance. Each option has its own terms, conditions and fees, so take time to choose the one that suits your budget.
How To Save For An Engagement Ring
With a few small changes, saving for a ring is easier than you might think:
- Shop with a grocery list. Sticking to a list stops impulse buys and can trim your weekly grocery bill.
- Cut back on food delivery. Delivery fees and higher menu prices add up quickly. Pick up your order instead.
- Cull unused subscriptions. Cancel the streaming services and memberships you rarely use.
- Use a budgeting app. Track your spending in real time and set a savings goal for your ring.
- Review your phone plan. Switching to a cheaper plan could save you hundreds of dollars a year.
