How Much Should You Spend on an Engagement Ring in 2025?

21 August 2025 • 6 min read

Planning to pop the big question in 2025? First off – congrats! Whether you’ve already started browsing rings or you’re still in the early stages of planning, one question always seems to come up: How much should I spend on my engagement ring?

The truth is, there’s no magic number. The amount you spend should reflect your budget, your partner’s style, and your values as a couple. In this guide, we’ll unpack what affects the price of an engagement ring in Australia, bu-st some outdated myths, and help you feel confident in your decision.

Ernesto Opinion

Ernesto believes that instead of caring about the price it should be the value of the diamond. He stated that some stones can appear larger than the other as they may be deeper cut meaning that the carat should not be worried about. While he does believe that the 4C’s are a  crucial part of the process he also thinks that the value is important in terms of how well it is cut. He strongly recommends that instead to not think so much about price as it does not reflect the true value of the diamond. He also states that it is important to get a piece which is custom made and not machine made as a custom made piece will help you reflect your story as it is more authentic. Erensto recently had a design where round brilliant diamonds were placed around the center stone but not in the shape of a classic halo which was extremely unique and valuable to him. 

The Budget Myth: Let’s Clear It Up

The Three-Month Salary “Rule”

For people asking the question How much should I spend on my engagement ring? You’ve probably heard that you should spend three months’ salary on an engagement ring. This idea came from a 1930s advertising campaign – not exactly sound financial advice.

In 2025, Australians are far more practical. With rising living costs, mortgages, travel goals, and the general expenses of life, the new norm is to spend what feels right – not what tradition tells you.

How Much Are Aussies Spending in 2025?

In Australia, the average spend on an engagement ring is sitting somewhere between $5,000 and $12,000. But many spend less, and plenty spend more – it really depends on personal priorities.

What’s influencing engagement ring budgets in 2025?

• The increasing popularity of lab-grown diamonds
• A shift towards sustainable, ethical purchases
• More couples shopping together, openly discussing expectations
• The desire for customised and meaningful designs

What Impacts the Cost of an Engagement Ring?

1. The Diamond’s 4Cs

If you’re buying a diamond, the price will largely depend on:

• Carat – how much it weighs
• Cut – how well it sparkles
• Colour – the more colourless, the more valuable
• Clarity – fewer imperfections mean a higher grade

In 2025, a 1-carat diamond with top clarity and colour could set you back over $15,000. But choosing a slightly lower grade (that still looks brilliant to the eye) can make a big difference to your budget.

2. Natural vs Lab-Grown Diamonds

Lab-grown diamonds are chemically identical to natural ones, but cost up to 40% less. They’re also more environmentally friendly – making them a popular choice for couples in 2025.

3. Metal Type & Ring Setting

Here’s a rough guide to metals, in terms of cost:

• Platinum – most expensive, durable, and hypoallergenic
• White gold – sleek and affordable
• Yellow gold – a warm, classic look
• Rose gold – romantic and stylish

The setting style – solitaire, pavé, halo, or custom – also plays a major role in the overall cost.

How Much Should You Spend? Budget Tiers in 2025

Budget	What You Can Expect
$2,000–$4,000	Petite solitaire or lab-grown diamond in a simple setting
$5,000–$7,500	Quality mid-range diamond with custom features or a halo setting
$10,000+	Higher carat, premium clarity diamonds with platinum or pavé band
$15,000+	Luxury brands, large natural diamonds, or detailed bespoke designs

How to Get More Sparkle for Your Spend

1. Prioritise Cut Over Carat

The cut of the diamond determines how much it sparkles. A smaller diamond with a great cut will shine brighter than a bigger one with a poor cut.

2. Explore Fancy Shapes

Round diamonds are the most expensive shape. Consider oval, pear, or cushion cuts – they look larger and cost less per carat.

Should You Shop Solo or Together?

In recent years, more couples are choosing to shop for rings together. It removes the guesswork, ensures the ring fits both their style and values, and often results in a more meaningful experience.

Prefer to keep it a surprise? Sneak a peek at your partner’s Pinterest, chat to their best mate, or bring in a ring they already wear for sizing and style inspo.

Think Value, Not Just Cost

An engagement ring isn’t about ticking a financial box – it’s about marking a moment in your love story. The “right” amount to spend is the one that fits your budget, your lifestyle, and your partner’s dreams.

Create Something Truly Special with Ernesto Buono

At Ernesto Buono Fine Jewellery, we believe your engagement ring should be as unique as your love story. Whether you’re after a classic solitaire, a vintage-inspired pavé setting, or a custom design that tells your tale – we’re here to bring it to life.

Our Sydney studio specialises in bespoke engagement rings, crafted with expert care, sustainable practices, and premium materials. We offer lab-grown and natural diamonds, so you can choose what feels right for you.

Visit our store, browse our stunning creations on Instagram @ernestobuonojewellery, or book a virtual consultation. Let’s create the perfect ring, together.

Final Thoughts: What’s the Right Budget in 2025?

Forget hard rules or flashy expectations. The perfect budget is one that reflects your values and doesn’t put pressure on your finances.

Whether you’re spending $3,000 or $30,000, it’s about the meaning behind the ring – not the price tag. With the right guidance, thoughtful planning, and a trusted jeweller, you’ll find (or create) a ring that celebrates your love beautifully.

FAQs: Engagement Ring Budgets in 2025

1. Is $5,000 enough for a good engagement ring?
   Definitely! In 2025, $5K can get you a gorgeous lab-grown diamond or a quality natural stone in a classic setting.
2. Are lab-grown diamonds still trending in 2025?
   Yes – they’re more popular than ever, thanks to affordability, ethical sourcing, and their identical beauty to mined diamonds.
3. Can I customise a ring on a smaller budget?
   Absolutely. Many jewellers offer bespoke options for under $5,000, especially with lab-grown stones.
4. Will my engagement ring increase in value?
   Most don’t. It’s a sentimental investment rather than a financial one – think love, not resale.
5. What if the ring doesn’t fit?
   Don’t stress. Most rings can be resized, especially by reputable jewellers like Ernesto Buono.