Key takeaways
- In-house financing, credit cards, personal loans and point-of-sale financing are common ways to fund engagement rings.
- Features like the setting, material and stone influence the cost of the ring.
- The average engagement ring was $5,200 in 2024 — but your dream ring could be more expensive if you choose more luxurious options.
These days, most couples are forgoing the traditional “three-month salary” rule for ring buying — instead, focus on your budget and long-term financial goals before selecting an engagement ring.
There are a handful of ways to finance your engagement ring purchase to make it more manageable, such as applying for a payment plan with a jeweler, using a credit card or taking out a buy now, pay later or personal loan.
Engagement ring statistics
- The average amount Americans spend on an engagement ring has fallen in recent years, from $6,000 in 2021 to $5,200 in 2024, according to The Knot.
- Engagement rings run the gamut of price — 33 percent of couples spent less than $3,000 on a ring, while 5 percent spent more than $15,000.
- Ring buyers in New England spent the most on engagement rings ($6,900, on average), and Midwest shoppers spent the least ($4,900).
- Diamonds are still the most popular stone when it comes to engagement rings, accounting for 83% of all rings purchased in 2024.
- Lab-grown diamonds are increasingly popular — largely because they can cost 50 to 70 percent less than natural diamonds. Moissanite stones are even more affordable.
- The average diamond engagement ring features a 1.7 carat stone.
- Yellow gold engagement rings are rising in popularity, accounting for 36 percent of all ring purchases. That’s a 27 percent increase since 2017 — but white gold still remains the most popular in 2025.
Budgeting for engagement rings
You might have heard the outdated rule of thumb that an engagement ring should be worth approximately three months of salary. Diamond jeweler De Beers popularized the idea of tying a ring’s price to your monthly earnings in its 1930s marketing campaign.
While an engagement ring doesn’t have to add up to that much money, you should still be prepared to spend at least a grand on the purchase. The average ring cost $5,200 in 2024, and according to The Knot, nearly two-thirds of couples spent less than $6,000.
Ring setting, metal type and diamond or gemstone details — like clarity and size — will all impact the price of your engagement ring. Because of the high cost, there are a few options you can explore if you need to finance the purchase of your ring.
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Engagement ring financing options
There are many different ways to finance a major purchase like an engagement ring. Popular options include in-store financing, credit cards and personal loans. No matter which form of financing you choose, it’s important to have a plan to repay the debt and avoid financial trouble.
1. Jewelry store financing
Jewelry store financing is best for convenience.
If you want a convenient financing source and don’t have strong credit, in-store financing may be worth a look. Many major jewelry retailers offer in-house financing to help customers pay for an engagement ring. These take the form of an installment loan — you make incremental monthly payments toward the loan balance, plus interest.
Generally, jewelry financing offers more flexible credit requirements than borrowing a traditional bank loan. Terms and financing requirements, like a minimum purchase amount, vary by retailer. But this flexibility and convenience comes at a price — interest rates tend to be higher with in-house financing, increasing your total cost of borrowing.
2. Credit card
Credit card financing is best for strategic buyers.
Using a credit card to finance an engagement ring can be a strategic option for responsible borrowers. It is best for individuals who have strong credit and can qualify for a low or no-interest period or plan to repay the ring purchase by the next billing statement.
For example, let’s say you have strong credit and qualify for a promotional 18-month 0 percent APR rewards credit card. If you can pay off your balance before the promo period ends, you’ll have avoided paying interest while also earning rewards points or miles.
If your credit doesn’t qualify for a promotional rate offer, be aware that credit card interest can be steep. When using a credit card without a no-interest promotion, calculate whether you have the budget to pay off the ring within the next billing cycle.
3. Personal loan
Personal loans are best for rate shopping.
Like jeweler financing, a personal loan is a type of installment loan. However, unlike jeweler financing, since the lender is a third party, you must get approved for the loan before shopping for your ideal ring. Buyers with good credit who want to shop around for a competitive interest rate may want to take advantage of a personal loan.
Eligibility for an unsecured personal loan varies between lenders, which includes credit requirements for approval. The advantage is comparing rates from multiple lenders to find the lowest option — even if you have less-than-perfect credit. That said, if you’d like to secure the best offer, make sure to boost your credit score by lowering high-interest debt, among other things, before you apply.
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4. Buy now, pay later loan
BNPL loans are best for online shoppers.
Buy now, pay later (BNPL) loans, also called “point-of-sale financing,” have gained popularity in recent years. BNPL services, like Affirm, Klarna and Afterpay, are often integrated into the checkout process when buying an engagement ring online. If you’re shopping online and want a seamless financing experience with the potential to pay no interest for a short repayment term, BNPL may be a good choice.
Generally, you pay a percentage of the total cost upfront. Then, you make equal payments over a short period (typically four to six weeks) to repay the remaining balance. Depending on the repayment term you choose or your credit, you might be offered a BNPL loan at no interest.
Bottom line
You don’t need to empty your savings to pop the big question. If you don’t have the cash on hand to purchase an engagement ring, many jewelers offer in-house financing, or you can explore BNPL or personal loan options. If you have excellent credit, you can use a credit card or open a new one with a promotional APR and pay it off before the 0 percent interest period ends.
Be sure to set a ring budget before you start shopping and only borrow as much as you can comfortably afford to repay. That way, you can keep your finances on track and protect your credit health.
Frequently asked questions about engagement ring financing
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