diff --git a/src/config.c b/src/config.c
index 15ab9e1..99eadb6 100644
--- a/src/config.c
+++ b/src/config.c
@@ -304,13 +304,13 @@ void add_entry(char *key, char *value)
 		char *b;
 		if ((b = strchr(value1, '%'))) {
 			b[0] = '\0';
-			panel_config.fractional_width = 1;
+			panel_config.fractional_width = TRUE;
 		}
 		panel_config.area.width = atoi(value1);
 		if (panel_config.area.width == 0) {
 			// full width mode
 			panel_config.area.width = 100;
-			panel_config.fractional_width = 1;
+			panel_config.fractional_width = TRUE;
 		}
 		if (value2) {
 			if ((b = strchr(value2, '%'))) {
diff --git a/src/panel.c b/src/panel.c
index 0c627d4..6489656 100644
--- a/src/panel.c
+++ b/src/panel.c
@@ -287,11 +287,9 @@ void init_panel_size_and_position(Panel *panel)
 			panel->area.height = 32;
 		}
 		if (panel->fractional_width)
-			panel->area.width = server.monitors[panel->monitor].width * panel->area.width / 100;
+			panel->area.width = (server.monitors[panel->monitor].width - panel->marginx) * panel->area.width / 100;
 		if (panel->fractional_height)
-			panel->area.height = server.monitors[panel->monitor].height * panel->area.height / 100;
-		if (panel->area.width + panel->marginx > server.monitors[panel->monitor].width)
-			panel->area.width = server.monitors[panel->monitor].width - panel->marginx;
+			panel->area.height = (server.monitors[panel->monitor].height - panel->marginy) * panel->area.height / 100;
 		if (panel->area.bg->border.radius > panel->area.height / 2) {
 			printf("panel_background_id rounded is too big... please fix your tint2rc\n");
 			g_array_append_val(backgrounds, *panel->area.bg);
@@ -309,18 +307,15 @@ void init_panel_size_and_position(Panel *panel)
 		}
 		int old_panel_height = panel->area.height;
 		if (panel->fractional_width)
-			panel->area.height = server.monitors[panel->monitor].height * panel->area.width / 100;
+			panel->area.height = (server.monitors[panel->monitor].height - panel->marginy) * panel->area.width / 100;
 		else
 			panel->area.height = panel->area.width;
 
 		if (panel->fractional_height)
-			panel->area.width = server.monitors[panel->monitor].width * old_panel_height / 100;
+			panel->area.width = (server.monitors[panel->monitor].width - panel->marginx) * old_panel_height / 100;
 		else
 			panel->area.width = old_panel_height;
 
-		if (panel->area.height + panel->marginy > server.monitors[panel->monitor].height)
-			panel->area.height = server.monitors[panel->monitor].height - panel->marginy;
-
 		if (panel->area.bg->border.radius > panel->area.width / 2) {
 			printf("panel_background_id rounded is too big... please fix your tint2rc\n");
 			g_array_append_val(backgrounds, *panel->area.bg);
@@ -329,6 +324,11 @@ void init_panel_size_and_position(Panel *panel)
 		}
 	}
 
+	if (panel->area.width + panel->marginx > server.monitors[panel->monitor].width)
+		panel->area.width = server.monitors[panel->monitor].width - panel->marginx;
+	if (panel->area.height + panel->marginy > server.monitors[panel->monitor].height)
+		panel->area.height = server.monitors[panel->monitor].height - panel->marginy;
+
 	// panel position determined here
 	if (panel_position & LEFT) {
 		panel->posx = server.monitors[panel->monitor].x + panel->marginx;
diff --git a/src/panel.h b/src/panel.h
index 0b17985..1806940 100644
--- a/src/panel.h
+++ b/src/panel.h
@@ -96,7 +96,7 @@ typedef struct Panel {
 	// position relative to root window
 	int posx, posy;
 	int marginx, marginy;
-	int fractional_width, fractional_height;
+	gboolean fractional_width, fractional_height;
 	int monitor;
 	int font_shadow;
 	gboolean mouse_effects;