Tolkowsky defines the ideal dimensions to have:

• Table percentage (table diameter divided by overall diameter) = 53%
• Depth percentage (Overall depth divided by the overall diameter) = 59.3%
• Pavilion Angle (Angle between the girdle and the pavilion) = 40.75°
• Crown Angle (Angle between the girdle and the crown) = 34.5°
• Pavilion Depth (Depth of pavilion divided by overall diameter) = 43.1%
• Crown Depth (Depth of crown divided by crown diameter) = 16.2%

The culet is the tiny point or facet at the bottom of the diamond. This should be a negligible diameter, otherwise light leaks out of the bottom. Tolkowsky's ideal dimensions did not include a culet. However, a thin culet is required in reality in order to prevent the diamond from easily chipping in the setting. A normal culet should be about 1%–2% of the overall diameter.

The further the diamond's characteristics are from Tolkowsky's ideal, the less light will be reflected. However, there is a small range in which the diamond can be considered "ideal." Today, because of the relative importance of carat weight in society, many diamonds are often intentionally cut poorly to increase carat weight. There is a financial premium for a diamond that weighs the magical 1.0 carat, so often the girdle is made thicker or the depth is increased. Neither of these tactics make the diamond appear any bigger, and they greatly reduce the sparkle of the diamond. So a poorly cut 1.0 carat diamond may have the same diameter and appear as large as a 0.85 carat diamond. The depth percentage is the overall quickest indication of the quality of the cut of a round brilliant. "Ideal" round brilliant diamonds should not have a depth percentage greater than 62.5%. Another quick indication is the overall diameter. Typically a round brilliant 1.0 carat diamond should have a diameter of about 6.5 mm. Mathematically, the diameter in millimeters of a round brilliant should approximately equal 6.5 times the cube root of carat weight, or 11.1 times the cube root of gram weight, or 1.4 times the cube root of point weight.

Ideal cuts can be controversial as the definitions of brilliance and beauty are very subjective.

Tolkowsky's mathematical model is now superseded by the GIA Facetware software that is the culmination of 20 years of studies on diamond cuts.

New diamond cuts are now all the rage in the diamond industry as for example a design invented in 2003 and called the Genesis cut. This cut differs in shape from the more traditional cuts in its concave surfaces and angles and resembles a 4-pointed star.

Shape

Diamonds do not show all of their beauty as rough stones; instead, they must be cut and polished to exhibit the characteristic fire and brilliance that diamond gemstones are known for. Diamonds are cut into a variety of shapes that are generally designed to accentuate these features.

Diamonds which are not cut to the specifications of Tolkowsky's round brilliant shape (or subsequent variations) are known as "fancy cuts." Popular fancy cuts include the baguette (from the French, meaning rod or loaf of bread), marquise, princess cut (square outline), heart, briolette (a form of the rose cut), and pear cuts. Newer cuts that have been introduced into the jewelry industry are the "cushion" "radiant"(similar to princess cuts, but with rounded edges instead of square edges) and "Asscher" cuts. Many fancy colored diamonds are now being cut according to these new styles. Generally speaking, these "fancy cuts" are not held to the same strict standards as Tolkowsky-derived round brilliants and there are less specific mathematical guidelines of angles which determine a well-cut stone. Cuts are influenced heavily by fashion: the baguette cut—which accentuates a diamond's luster and downplays its fire—was all the rage during the Art Deco period, whereas the princess cut cut—which accentuates a diamond's fire rather than its luster—is currently gaining popularity. The princess cut is also popular amongst diamond cutters: of all the cuts, it wastes the least of the original crystal. The past decades have seen the development of new diamond cuts, often based on a modification of an existing cut. Some of these include extra facets. These newly developed cuts are viewed by many as more of an attempt at brand differentiation by diamond sellers, than actual improvements to the state of the art. One of these is a diamond cut called Pristine Hearts which though round shaped has got a beautiful heart visible through table as well as the bottom side.

Quality

The quality of a diamond's cut is widely considered the most important of the four Cs in determining the beauty of a diamond; indeed, it is commonly acknowledged that a well-cut diamond can appear to be of greater carat weight, and have clarity and color appear to be of better grade than they actually are. The skill with which a diamond is cut determines its ability to reflect and refract light.

In addition to carrying the most importance to a diamond's quality as a gemstone, the cut is also the most difficult to quantitatively judge. A number of factors, including proportion, polish, symmetry, and the relative angles of various facets, are determined by the quality of the cut and can affect the performance of a diamond. A poorly cut diamond with facets cut only a few degrees out of alignment can result in a poorly performing stone. For a round brilliant cut, there is a balance between "brilliance" and "fire." When a diamond is cut for too much "fire," it looks like a cubic zirconia, which gives off much more "fire" than real diamond. A well-executed round brilliant cut should reflect light upwards and make the diamond appear white when viewed from the top. An inferior cut will produce a stone that appears dark at the center and in some extreme cases the ring settings may show through the top of the diamond as shadows.

Several different theories on the "ideal" proportions of a diamond have been and continue to be advocated by various owners of patents on machines to view how well a diamond is cut. These advocate a shift away from grading cut by the use of various angles and proportions toward measuring the performance of a cut stone. A number of specially modified viewers and machines have been developed toward this end. Hearts and Arrows viewers test for the "hearts and arrows" characteristic pattern observable in stones exhibiting high symmetry and particular cut angles. Closely related to Hearts and Arrows viewers is the ASET which tests for light leakage, light return, and proportions. The ASET (and computer simulations of the ASET) are used to test for AGS cut grade. These viewers and machines often help sellers demonstrate the light performance results of the diamond in addition to the traditional 4 Cs. Detractors see these machines as marketing tools rather than as scientific tools.

The GIA has developed a set of criteria for grading the cut of round brilliant stones that is now the standard in the diamond industry and is called Facetware.