Engagement Ring Calculator
Buying an engagement ring can be challenging. There are many factors to consider, such as the 4Cs of diamonds (cut, color, clarity, and carat), how much you earn in a year, and how much you can spend. As with any significant purchase, you must consider your lifestyle, regular expenses, and debt, if any.
Of course, you also have to take into account the kind of engagement ring that will put a smile on your partner’s face. Truly, choosing an engagement ring can entail a lot of work, so it’s best to be aware of a few important details when calculating the cost of an engagement ring.
Don’t forget to check out the amazing deals on Amazon for engagement rings for women. Starting from just $19.00!
What Is the Average Size of a Diamond in an Engagement Ring?
For many people, one way they can decide on which engagement ring to pick is by checking the center diamond’s size. Of course, they could take the 4Cs into consideration, but for the most part, it’s the size of the center diamond that they base their budget on. In this case, it pays to know the average size of a diamond, so you can have a rough idea of what you should be looking for.
At London Gold, we have done a lot of research into the average size of an engagement ring’s center diamond. Most of the available statistical data pertaining to this topic may have flaws and biases, but overall, we have found that the estimated average size of a diamond in the U.S. is 1.10 carats. In other countries such as the UK, Australia, and New Zealand, the average size of a diamond is pegged at approximately 0.70 carats.
This is a good jumping point for those looking to purchase an engagement ring as your budget can be easier to control without overspending. However, basing your budget on the center diamond’s size alone may be limiting as you might end up being dissatisfied with your diamond. While you can control your budget, you won’t have control over the other details of the diamond.
For instance, a 1.10 carat, round, D color, flawless diamond will be around the $19,000 range. However, a diamond of the same carat and cut but with a J color and an SI2 clarity will cost only $4,200. Though these have the same carats, the price can differ dramatically based on the other qualities of the diamond.
What Is the Average Cost of an Engagement Ring?
According to an article from American Express, couples tend to spend $1,000 to $5,000 on engagement rings, but the average cost can amount to $6,000.
However, basing your budget on a national or worldwide average can prove to be detrimental. Your primary consideration should always be your own financial means. While spending $5,000 for a ring might make you feel that you’ve paid for a fair amount, there are those whose finances fall far below the average. On the other hand, there are couples who are more than happy to spend as much as $114,000 for a 3 carat Lunaria Oval Halo Diamond Engagement Ring.
How Much Should You Spend on an Engagement Ring?
Again, your financial means should be your primary consideration when purchasing an engagement ring. But how should you set a budget for your engagement ring?
There have been some payment systems that have long been in place, which people use to determine the “traditional amount” couples ought to spend for an engagement ring. These include the two-month system (which is perhaps the most popular), the one-month system, and the three-month system. Basically, these traditional budgeting systems take into account your yearly salary and the amount you should spend on an engagement ring will be based on your two-month, one-month, and three-month salary.
Here’s an example to make this clearer: If your yearly salary is $60,000, this is how much you’re supposed to spend on an engagement ring based on these budgeting systems:
● Two-month system: $10,000
● One-month system: $5,000
● Three-month system: $15,000
However, this budgeting method can be outdated and inapplicable when you consider other factors such as your lifestyle and priorities. While it’s extremely simple to calculate and has become somewhat of a traditional benchmark, these budgeting system’s fail to take into account a modern couple’s debt, expenses, lifestyle choices, and a host of other factors that can affect their financial capacity.
Instead, what you can do is use an engagement ring budget calculator that takes into account not just your yearly salary but also your lifestyle, existing debt, frequency of travel, and how much you’re willing to spend.
What If I Can’t Afford an Engagement Ring?
Buying an engagement ring is indeed an important and meaningful step in a couple’s life, but if you can’t afford one, don’t buy one. It’s really that simple. There’s no harm in waiting or saving up until you can afford to buy the ring that will make your partner happy. Remember that no item, no matter how monumental, is worth going into significant debt.
Additionally, if you can’t buy an expensive ring, you won’t go wrong with a more affordable one. You can also choose to buy a setting-only ring, such as this beautiful 14K white gold Gallery Designs Solitaire Engagement Setting Only or this gorgeous 18K rose gold Isadora Vintage Cathedral Engagement Setting. This way, you can have time to save up for the center diamond and eventually find one that’s suited to your budget.
Ring Out the Old and in With the New
Though there have been “traditional” ways to budget for an engagement ring, you don’t necessarily have to apply them to your situation and finances when you use our engagement ring calculator. The best part about buying engagement rings these days is that there are tons of designs and price brackets you can choose from that you’re sure to find one that’s suited to your requirements.