Understanding The Ring Formula

Getting engaged is one of the best moments in a person’s life. However, there are some struggles that may come before the big day, and one of those is buying an engagement ring. It can be a stressful but fun experience for most people. This is because there are lots of things that you need to consider when buying one, including the shape, cut quality, clarity, and color of the diamond. There’s also the carat weight of the diamond and the type of metal for the setting. That is not all, as you also need to add factors like fluorescence, sizing, and more into the equation. These are some of the reasons it is common for people to feel overwhelmed when buying an engagement ring. 

The biggest pressure when buying an engagement ring is on its cost. Many people agree on the two-to-three-month salary rule for an engagement ring. However, if that would hurt your wallet and your budget, then buying an engagement ring should have in-depth preparation and needs sufficient time for saving. There are various websites out there that provide a formula for buying engagement rings. However, it is not everyone’s capability to spend a few months of salary on a ring. 

If you are planning to purchase an engagement ring soon and you want to plan out your budget but can’t seem to grasp the formula for it, no worries, as we’re here to help you. In this post, we are giving you more information about understanding the ring formula. 

Different Ring Formulas

There are various payment systems that people utilize to know the “traditional amount” that couples should spend for an engagement ring. These systems are provided to the public by many bloggers and websites that discuss budgeting for an engagement ring. We, too, have an engagement ring budget calculator on this site, which includes various factors to make the calculations more personal and accurate. 

According to the general rule that we’ve mentioned earlier, spending at least 2 months’ salary on the engagement ring is ideal. For instance, if you are earning $60,000 annually, you can ideally spend $10,000 on the engagement ring. However, there are also other calculations and budget theories out there that most people follow. Here are some of them:

Two Months’ Salary

This system may also include the one and three months of salary systems. This is the most popular way of calculating how much to spend on an engagement ring. Based on the one-month system, if you are earning $60,000 annually, your engagement ring budget should be $5,000. For the two-month system, it should be $10,000, and %15,000 for the three-month system. 

The advantage of this calculation is that it is very simple. Due to this, a lot of people have followed this system, and it has almost become a tradition. However, the downside is that it is too simple for the modern era. The debt and other expenses of the couple don’t figure into this plan, as well as their lifestyle choices. 

Average Engagement Ring Cost

Back in 2015, the average amount that people spend on engagement rings was around $5,800. After a couple of years, the price has possibly increased to about $6,800. In this system, your financial means is the one that will determine your budget instead of a worldwide average. The rule is that no one should go into debt just to pay off an engagement ring. 

This is actually a very simple system as the couple would feel that they paid a fair or average amount. However, most people fall far below or far above the average. In fact, there are couples who can’t spend $4,000, while there are others who are willing to spend $100,000. This means that limiting your budget to a national average is a bad idea. 

Average Size of Diamond

Other people calculate their engagement ring budget based on the size of the center diamond. However, based on research, this system has flaws, predispositions, and lots of guesswork. In the United States, the estimated average diamond size is 1.10 carats, while in countries like the UK, New Zealand, Australia, and Canada is around 0.70 carats. 

For instance, a diamond that is 1.10 carat, round, D color, and flawless can cost around $19,000, while a 1.10 carat, round, J color with S12 clarity can cost around $4,200. Even though both of them are 1.10 carats, there’s a big difference in price. The downside of this system is that it can leave a lot of people dissatisfied with the diamond as it can greatly hamper the control of the other essential details of the diamond.

Financing Your Engagement Ring

an engagement ring forming the word love

There are many ways how people finance engagement rings. Some go for credit card financing, while others prefer spending cash for the ring. Whichever way you choose, it is a crucial decision that only you can make. However, if you find it challenging to decide for yourself, there is some advice that we can give. 

When you buy an engagement ring, spending cash is a better option. This is because using a credit card can tempt you to buy a more expensive ring than what you intend to spend through cash payment. It is also better if you plan to surprise your partner with your proposal. Since the ring is already paid in cash in full, you no longer need to hide any bills or receipts that might spoil the surprise. Plus, it feels better to use the money you have saved for a while for the special day. 

With this, we can say that the engagement ring formula is very simple. All you need is to set a target cost for the ring and the number of months or weeks that you can save for it. Divide the total cost of the ring by the number of months that you have to save. After that, make sure that you commit to not using the savings or cutting any amount to be able to reach the cost of the ring and propose to your girlfriend on your planned date.


Buying an engagement ring should be more enjoyable than stressful. Using formulas and calculators can be beneficial for some people, while others may find them not very helpful. There’s really no magic formula when it comes to how much you should spend on an engagement ring. But you can use calculators for determining how much savings you need to have to get the best engagement ring for your partner. If ever you can’t afford an expensive ring, you can wait and save up for a longer time or maybe choose to buy a more affordable one. Always remember that a successful engagement does not depend on the price of the ring but on your genuine intent to marry the person you love.