One of the first questions for any groom to be is how much an engagement ring will cost. Generally, the idea is to make your spouse feel like the most important person in the world with the least possible damage to your checking account…easier said than done I’m sure. Maybe you have come across one of the following suggestions: 2 month’s salary, as much as you can save up for without going into debt, or $1 for every week you want stay married. While these questionable answers focus on the budget allocation of ring shopping, they do little to serve as a guide for the best allocation of your hard-earned funds.

The minute you step into a diamond store, you enter a foreign country where your lack of knowledge is someone else’s sales commission.  Shopping for an engagement ring can be quite a journey, but armed with the right equipment, you can successfully navigate these treacherous waters and still come out ahead. Let’s start by taking a look at the different aspects that affect diamond prices and see if we can uncover the truth about how much your engagement ring really should cost.

The following diamond ring estimates (courtesy of about.com) should give you a rough idea of diamond price ranges:
How much is an engagement ring?
Quarter carat or less diamond, $125 to $500 set in 14 carat gold

Third to half carat diamond, $750 to $1,000 set in 18 carat gold or platinum, possibly more if ASG/GIA certified

For diamonds up to .75 carat, or smaller ASG/GIA certified stones, $1,000-$2,000

For diamonds up to 1 carat, $2,000 to $3,500, set in 14 carat gold

High quality 1 carat diamond, $4,000 or more, set in 18 carat gold or platinum

While seeing these diamond price ranges can definitely help, once you read the following information about diamond characteristics, you will be much better educated on knowing how much an engagement ring is.

You probably have heard of the 4’c of diamonds: cut, clarity, color, and carat size. If you need a refresher on any of these characteristics, you can find additional information in our Diamond Guide. Now assuming you understand these diamond traits, let’s discuss how each affects diamond prices and overall quality. If one characteristic stands above the others, it is the cut.

Assuming that you know which diamond shape you’re going after, the next most important factor is to make sure you select a diamond with cut at least rated “good”. The money you save by downgrading here is simply not worth the sacrifice in diamond quality. This is where the sparkle of the diamond derives from and will determine to what degree your fiancée’s face melts upon receiving the engagement ring.

Clarity can also greatly affect diamond prices, but has a lot more potential of cost savings without significantly affecting a diamond’s appearance. As long as you don’t go below a clarity rating of SI1 or SI2, you probably won’t be able to see the difference of a higher clarity without really getting close or magnifying the diamond. Color is also a good way to get more for less, but I generally wouldn’t advise going below a rating of J for the main (center) diamond.

The smaller the diamond size, the less difference color and clarity make on the diamond. So if your spouse wants a ring with a lot of bling (more than one diamond), downgrading the smaller diamonds is a great way to lower your overall diamond price. Also, the presence of a slight yellow coloring will be less noticeable with a setting of white gold or platinum.

How much an engagement ring is, ultimately depends on the carat weight. One important factor to consider here is that price rises incrementally and exponentially in this category. For example, there are usually large price jumps for a diamond that is slightly less than 1 carat compared a diamond that is slightly over 1 carat. This is due to the fact that 1 carat diamonds are so desirable. So by buying a diamond that is almost indistinguishably smaller, you can easily save hundreds of dollars.

I hope these insights will prove valuable as you prepare for your engagement ring purchase. Regardless of where you purchase your ring, do yourself a favor and get a multiple diamond quotes and check each store’s return policy in the unlikely (more likely than you think) event that you need to return the ring for whatever reason. Diamond prices do fluctuate and how much an engagement ring is depends on the other factors like the setting and optional warranties/insurance, so make sure to include these in your budget.