-
Commitment to our readers
18 years
Helping you save money
Reviewed
by experts
Cited by
major publications
Finder maintains full editorial independence to ensure for our readers a fair assessment of the products, brands, and services we write about. That independence helps us maintain our reader's trust, which is what keeps you coming back to our site. We uphold a rigorous editorial process that ensures what we write and publish is fair, accurate, and trustworthy — and not influenced by how we make money.
We're committed to empowering our readers to make sound and often unfamiliar financial decisions.
We break down and digest information information about a topic, product, brand or service to help our readers find what they're looking for — whether that's saving money, getting better rewards or simply learning something new — and cover any questions you might not have even thought of yet. We do this by leading with empathy, leaning on plain and conversational language that speaks directly, without speaking down.
Can you finance an engagement ring?
Contrary to popular belief, most people don’t pay cash for engagement rings — much the same as they don’t pay cash for other major purchases such as cars, furniture or expensive appliances. For one thing, even if you have the money, you might be better off holding onto those savings for emergencies. Or, you may want to use some of those funds to help pay for the wedding.
Ultimately, financing an engagement ring can be a good way to save your cash for other expenses and allow you to pay for the ring over time. However, if you plan ahead and set aside a special ring fund — perhaps in a high-yield savings account — paying cash for an engagement ring could be a smart move.
How much does an engagement ring cost?
The average cost of an engagement ring is around $5,500, according to a study by The Knot, a wedding planning website, but it really depends on the couple. In fact, nearly half of those surveyed only spent between $1,000 to $4,000, and 9% of engagement ring buyers spent less than $1,000.
The main cost of the ring depends on the center stone, with diamonds being the most expensive. And, as with any stone, the larger the gem, the bigger the price tag. Your choice of metal also affects the price, although not as drastically. Gold and platinum are typically the most popular choices, but platinum is definitely pricier. The cost also depends on how elaborate the design is and how many accent stones you choose.
Calculate your loan costs for buying an engagement ring
The cost of your loan depends on the lender, loan type, interest rate and loan term. Exact costs vary depending on your eligibility. Use our engagement ring financing calculator to compare monthly payments based on different interest rates and loan terms.
Monthly payment calculator
See how much you'll pay
Your loan
|
---|
Loan amount |
$
|
Loan terms (in years) |
|
Interest rate |
%
|
Fill out the form and click on “Calculate” to see your estimated monthly payment.
or
Compare more lendersBased on your loan terms
Principal | $ |
---|---|
Interest | $ |
Total Cost | $ |
Engagement ring financing options
If you don’t have cash to pay for the ring of your partner’s dreams, consider these wedding ring financing options.
Personal loans
A personal loan could be one of your best options for engagement ring financing because of the wide selection of lenders available. Loans through banks, credit unions and online lenders are largely unsecured, and personal loan rates may start as low as 6%. But your rate largely depends on your credit score, income and other financial details.
Pros
- Fast funding
- Can typically apply online
- Lower rates than credit cards
Cons
- May need a good credit score to qualify
- Higher rates for bad credit
- May charge origination fees
What is the Finder Score?
The Finder Score crunches 6+ types of personal loans across 50+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
In-store financing
Many big-name retailers offer in-house engagement ring financing, with some extending no-interest financing for a limited period. Just be wary of high interest rates once the promotional periods end, and expect stiff penalties if you miss a payment.
Pros
- One-stop shopping and financing
- Possible promotional deals
- May be easier to qualify for
Cons
- Rates could be very high after promo period
- Not all stores offer financing deals
- May have expensive late fees
Credit cards
Depending on the cost of the engagement ring, you might be able to put it on your credit card and vow to pay it back as quickly as possible. Bonus: If you have a card that earns miles, you could use those toward your honeymoon flight!
Or, you could apply for a credit card with a zero-interest promotional period — sometimes up to 18 months. Credit cards are usually easier to qualify for than loans, but rates are typically quite high after the promo period ends.
Pros
- Fast financing
- Period of interest-free financing
- Usually easier to qualify for
Cons
- High rate after promotional period
- May need a good credit score to qualify
- Approved credit limit may be too low
HELOC or Home equity loan
If you own a house and have at least 20% equity, you could leverage your home’s equity to finance an engagement ring. Your two main options are a fixed-rate, lump-sum home equity loan or a variable-rate home equity line of credit. You can typically get better rates with home equity financing, but the loan process can take a while. Plus, you’ll put your house at risk of foreclosure if you can’t make the payments.
Pros
- Typically better rates than personal loans
- Option of lump sum or revolving line of credit
Cons
- Uses your home as collateral
- Longer loan process
- May not have enough equity to qualify
Tips when getting an engagement ring loan
- Make a budget. Figure out how much you want to spend, then find a ring that fits into your budget — there are so many options.
- Compare loan interest rates. The interest rate you qualify for affects the loan’s total cost significantly, so shop around to find the best rate.
- Beware of fees. Some lenders charge fees on top of interest — which adds to the loan’s cost — so make sure you’re aware of any additional fees.
- Consider the loan term. If your goal is small monthly loan payments, a longer loan term is the way to go. But if you want to save on interest, consider a shorter loan term or paying more than your minimum payment when you can.
- Assess the eligibility criteria. Most lenders require good to excellent credit scores to qualify. You may still qualify for a loan with bad credit, but you’ll typically pay a higher rate, or you may need collateral to secure the loan.
How much should you spend on an engagement ring?
There is no magic price to spend on an engagement ring — and you can forget the whole three months’ salary rule. The right price for an engagement ring is what you can afford, combined with the style that makes your loved one happy. And there is no price on happiness.
How much you spend on an engagement ring is a decision between you and your partner. Not every spouse-to-be even wants the giant diamond ring — or even a diamond at all.
If you want the proposal to be a surprise, you may not be able to discreetly ask your significant other what they prefer. However, you could ask family members or friends for a little input. Or, as many couples do, you could shop together.
Either way, here are a few things to consider:
- How much do you want to spend?
- Is your partner willing to sacrifice some quality for a larger stone, or vice versa?
- Does your mate want a diamond or a less traditional ring instead?
- Is an ethically sourced ring important to you or your partner?
- Do you want to purchase the engagement ring and wedding band as a set?
Another option to consider — which is growing in popularity, says The Knot — is to purchase a less expensive, “temporary” ring. Then, you can save up for the “permanent” ring or pick one out together after you’re engaged. And, for modern couples, it’s not unheard of to share the ring’s cost.
Bottom line
Getting married is a big decision that often comes with a big price tag. So, if you’re ready to pop the question but don’t have enough cash for the ring, consider personal loans, in-store financing, credit cards or other jewelry financing options.
Frequently asked questions
What is the three months’ salary rule for engagement rings?
Back in the 1930s, diamond-giant De Beers came up with a marketing campaign that suggested a diamond ring — equal to a month’s worth of your salary — would prove your love and commitment. Eventually, around the 80s, that idea evolved into allocating three months to the ring purchase. These days, that theory is thought to be outdated.
What if I don’t qualify for engagement ring financing?
If you don’t meet the eligibility requirements to get an engagement ring loan, don’t despair. One option is to ask if you can borrow money from a friend or family member. You could also earn extra money by getting a second job or reducing your expenses to save more.
How do most people pay for engagement rings?
While some people can pay cash for an engagement ring — or have an heirloom in the family — most people use credit cards, personal loans or in-store financing.
Ask a question
More guides on Finder
-
Kashable Review: Fast Loans but Limited Eligibility
Explore a lender offering quick, simple loans based on employment rather than just credit.
-
Reach Financial: Fast & Easy Loans but Use Is Limited
A review of Reach Financial, a lender that offers personal loans for debt consolidation and credit card refinancing.
-
Does Amazon Offer Loans to Employees? No — Consider These Options
Lenders that offer loans to Amazon employees, including personal loans and mortgage services.
-
Does Walmart Offer Loans to Employees? No — Consider These Instead
Lenders that offer loan and mortgage assistance to Walmart employees and other alternatives.
-
10 Emergency Loans for Good and Bad Credit
Emergency payday loans can give you quick and easy access to funds. Compare your options and find a lender to help see you through.
-
Personal loans in Pennsylvania
Apply for a personal loan in Pennsylvania and get the funds you need.
-
Personal loans in Georgia
Apply for a personal loan in Georgia today.
-
Sites like Marcus Personal Loans
Looking for something similar to Marcus by Goldman Sachs personal loans? See how these top providers compare.
-
Loans Like LendingPoint
Like LendingPoint but not sure it’s the right lender for you? Compare these six similar providers.
-
Loans for Seniors
If you’re a retiree and looking for a loan, there are lenders who may approve your application. Learn more about the loan types available to retired people.