diff --git a/app/schemas/to.bitkit.data.AppDb/7.json b/app/schemas/to.bitkit.data.AppDb/7.json
new file mode 100644
index 0000000000..042e5f23be
--- /dev/null
+++ b/app/schemas/to.bitkit.data.AppDb/7.json
@@ -0,0 +1,108 @@
+{
+  "formatVersion": 1,
+  "database": {
+    "version": 7,
+    "identityHash": "2b1cda225c170b5f1bbfbf76e5fa4cf5",
+    "entities": [
+      {
+        "tableName": "config",
+        "createSql": "CREATE TABLE IF NOT EXISTS `${TABLE_NAME}` (`walletIndex` INTEGER NOT NULL, PRIMARY KEY(`walletIndex`))",
+        "fields": [
+          {
+            "fieldPath": "walletIndex",
+            "columnName": "walletIndex",
+            "affinity": "INTEGER",
+            "notNull": true
+          }
+        ],
+        "primaryKey": {
+          "autoGenerate": false,
+          "columnNames": [
+            "walletIndex"
+          ]
+        }
+      },
+      {
+        "tableName": "transfers",
+        "createSql": "CREATE TABLE IF NOT EXISTS `${TABLE_NAME}` (`id` TEXT NOT NULL, `type` TEXT NOT NULL, `amountSats` INTEGER NOT NULL, `channelId` TEXT, `fundingTxId` TEXT, `lspOrderId` TEXT, `isSettled` INTEGER NOT NULL, `createdAt` INTEGER NOT NULL, `settledAt` INTEGER, `claimableAtHeight` INTEGER, `txTotalSats` INTEGER, `preTransferOnchainSats` INTEGER, PRIMARY KEY(`id`))",
+        "fields": [
+          {
+            "fieldPath": "id",
+            "columnName": "id",
+            "affinity": "TEXT",
+            "notNull": true
+          },
+          {
+            "fieldPath": "type",
+            "columnName": "type",
+            "affinity": "TEXT",
+            "notNull": true
+          },
+          {
+            "fieldPath": "amountSats",
+            "columnName": "amountSats",
+            "affinity": "INTEGER",
+            "notNull": true
+          },
+          {
+            "fieldPath": "channelId",
+            "columnName": "channelId",
+            "affinity": "TEXT"
+          },
+          {
+            "fieldPath": "fundingTxId",
+            "columnName": "fundingTxId",
+            "affinity": "TEXT"
+          },
+          {
+            "fieldPath": "lspOrderId",
+            "columnName": "lspOrderId",
+            "affinity": "TEXT"
+          },
+          {
+            "fieldPath": "isSettled",
+            "columnName": "isSettled",
+            "affinity": "INTEGER",
+            "notNull": true
+          },
+          {
+            "fieldPath": "createdAt",
+            "columnName": "createdAt",
+            "affinity": "INTEGER",
+            "notNull": true
+          },
+          {
+            "fieldPath": "settledAt",
+            "columnName": "settledAt",
+            "affinity": "INTEGER"
+          },
+          {
+            "fieldPath": "claimableAtHeight",
+            "columnName": "claimableAtHeight",
+            "affinity": "INTEGER"
+          },
+          {
+            "fieldPath": "txTotalSats",
+            "columnName": "txTotalSats",
+            "affinity": "INTEGER"
+          },
+          {
+            "fieldPath": "preTransferOnchainSats",
+            "columnName": "preTransferOnchainSats",
+            "affinity": "INTEGER"
+          }
+        ],
+        "primaryKey": {
+          "autoGenerate": false,
+          "columnNames": [
+            "id"
+          ]
+        }
+      }
+    ],
+    "setupQueries": [
+      "CREATE TABLE IF NOT EXISTS room_master_table (id INTEGER PRIMARY KEY,identity_hash TEXT)",
+      "INSERT OR REPLACE INTO room_master_table (id,identity_hash) VALUES(42, '2b1cda225c170b5f1bbfbf76e5fa4cf5')"
+    ]
+  }
+}
\ No newline at end of file
diff --git a/app/src/main/java/to/bitkit/data/AppDb.kt b/app/src/main/java/to/bitkit/data/AppDb.kt
index 81038037aa..f9ce8a2b6b 100644
--- a/app/src/main/java/to/bitkit/data/AppDb.kt
+++ b/app/src/main/java/to/bitkit/data/AppDb.kt
@@ -31,7 +31,7 @@ import to.bitkit.env.Env
         ConfigEntity::class,
         TransferEntity::class,
     ],
-    version = 6,
+    version = 7,
 )
 @TypeConverters(StringListConverter::class)
 abstract class AppDb : RoomDatabase() {
@@ -45,6 +45,13 @@ abstract class AppDb : RoomDatabase() {
             }
         }
 
+        private val MIGRATION_6_7 = object : Migration(6, 7) {
+            override fun migrate(db: SupportSQLiteDatabase) {
+                db.execSQL("ALTER TABLE transfers ADD COLUMN txTotalSats INTEGER DEFAULT NULL")
+                db.execSQL("ALTER TABLE transfers ADD COLUMN preTransferOnchainSats INTEGER DEFAULT NULL")
+            }
+        }
+
         private const val DB_NAME = "${BuildConfig.APPLICATION_ID}.sqlite"
 
         @Volatile
@@ -72,7 +79,7 @@ abstract class AppDb : RoomDatabase() {
                         }
                     }
                 })
-                .addMigrations(MIGRATION_5_6)
+                .addMigrations(MIGRATION_5_6, MIGRATION_6_7)
                 .apply {
                     if (Env.isDebug) fallbackToDestructiveMigration(dropAllTables = true)
                 }
diff --git a/app/src/main/java/to/bitkit/data/entities/TransferEntity.kt b/app/src/main/java/to/bitkit/data/entities/TransferEntity.kt
index 6203f32abe..62b25e512a 100644
--- a/app/src/main/java/to/bitkit/data/entities/TransferEntity.kt
+++ b/app/src/main/java/to/bitkit/data/entities/TransferEntity.kt
@@ -18,4 +18,6 @@ data class TransferEntity(
     val createdAt: Long,
     val settledAt: Long? = null,
     val claimableAtHeight: Int? = null,
+    val txTotalSats: Long? = null,
+    val preTransferOnchainSats: Long? = null,
 )
diff --git a/app/src/main/java/to/bitkit/models/BalanceState.kt b/app/src/main/java/to/bitkit/models/BalanceState.kt
index 9bfb8b4cd1..7618389b57 100644
--- a/app/src/main/java/to/bitkit/models/BalanceState.kt
+++ b/app/src/main/java/to/bitkit/models/BalanceState.kt
@@ -15,7 +15,14 @@ data class BalanceState(
     val balanceInTransferToSpending: ULong = 0uL,
     val hardwareWallets: List<HwWalletBalance> = emptyList(),
 ) {
-    val totalSats get() = totalOnchainSats + totalLightningSats
+    val totalSats
+        get() = totalOnchainSats
+            .safe()
+            .plus(totalLightningSats.safe())
+            .safe()
+            .plus(balanceInTransferToSavings.safe())
+            .safe()
+            .plus(balanceInTransferToSpending.safe())
 
     val totalHardwareSats get() = hardwareWallets.fold(0uL) { acc, wallet -> acc.safe() + wallet.sats.safe() }
 
diff --git a/app/src/main/java/to/bitkit/repositories/TransferRepo.kt b/app/src/main/java/to/bitkit/repositories/TransferRepo.kt
index 44464bd16c..449a8f56c2 100644
--- a/app/src/main/java/to/bitkit/repositories/TransferRepo.kt
+++ b/app/src/main/java/to/bitkit/repositories/TransferRepo.kt
@@ -62,6 +62,8 @@ class TransferRepo @Inject constructor(
         fundingTxId: String? = null,
         lspOrderId: String? = null,
         claimableAtHeight: UInt? = null,
+        txTotalSats: Long? = null,
+        preTransferOnchainSats: Long? = null,
     ): Result<String> = withContext(bgDispatcher) {
         runCatching {
             val id = UUID.randomUUID().toString()
@@ -76,6 +78,8 @@ class TransferRepo @Inject constructor(
                     isSettled = false,
                     createdAt = clock.now().epochSeconds,
                     claimableAtHeight = claimableAtHeight?.toInt(),
+                    txTotalSats = txTotalSats,
+                    preTransferOnchainSats = preTransferOnchainSats,
                 )
             )
             Logger.info("Created transfer: id=$id type=$type channelId=$channelId", context = TAG)
diff --git a/app/src/main/java/to/bitkit/usecases/DeriveBalanceStateUseCase.kt b/app/src/main/java/to/bitkit/usecases/DeriveBalanceStateUseCase.kt
index 5aaa4f9e71..6ae7003a66 100644
--- a/app/src/main/java/to/bitkit/usecases/DeriveBalanceStateUseCase.kt
+++ b/app/src/main/java/to/bitkit/usecases/DeriveBalanceStateUseCase.kt
@@ -47,8 +47,12 @@ class DeriveBalanceStateUseCase @Inject constructor(
             val coopCloseSavingsSats = getCoopCloseTransferSats(activeTransfers, channels, balanceDetails)
             val lingeringCoopCloseSats = getLingeringCoopCloseSats(activeTransfers, channels, balanceDetails)
             val toSpendingAmount = paidOrdersSats.safe() + pendingChannelsSats.safe()
+            val orderPaymentsOnchainToSubtract = getOrderPaymentOnchainToSubtract(
+                activeTransfers = activeTransfers,
+                currentOnchainSats = balanceDetails.totalOnchainBalanceSats,
+            )
 
-            val totalOnchainSats = balanceDetails.totalOnchainBalanceSats
+            val totalOnchainSats = balanceDetails.totalOnchainBalanceSats.safe() - orderPaymentsOnchainToSubtract.safe()
             val channelFundableBalance = getMaxChannelFundableAmount(lightningRepo.getChannelFundableBalance())
             val afterPendingChannels = balanceDetails.totalLightningBalanceSats.safe() - pendingChannelsSats.safe()
             val afterClosingChannels = afterPendingChannels.safe() - toSavingsAmount.safe()
@@ -95,6 +99,27 @@ class DeriveBalanceStateUseCase @Inject constructor(
         return amount
     }
 
+    private fun getOrderPaymentOnchainToSubtract(
+        activeTransfers: List<TransferEntity>,
+        currentOnchainSats: ULong,
+    ): ULong {
+        var amount = 0uL
+        val orderPayments = activeTransfers.filter {
+            it.type.isToSpending() && it.fundingTxId != null && it.lspOrderId != null
+        }
+
+        for (transfer in orderPayments) {
+            val txTotalSats = transfer.txTotalSats?.takeIf { it > 0 }?.toULong()
+            val preTransferOnchainSats = transfer.preTransferOnchainSats?.takeIf { it > 0 }?.toULong()
+
+            if (txTotalSats != null && preTransferOnchainSats != null && currentOnchainSats >= preTransferOnchainSats) {
+                amount = amount.safe() + txTotalSats.safe()
+            }
+        }
+
+        return amount
+    }
+
     private suspend fun getPendingChannelsSats(
         transfers: List<TransferEntity>,
         channels: List<ChannelDetails>,
diff --git a/app/src/main/java/to/bitkit/viewmodels/TransferViewModel.kt b/app/src/main/java/to/bitkit/viewmodels/TransferViewModel.kt
index 38116c390e..430d2885f2 100644
--- a/app/src/main/java/to/bitkit/viewmodels/TransferViewModel.kt
+++ b/app/src/main/java/to/bitkit/viewmodels/TransferViewModel.kt
@@ -205,8 +205,8 @@ class TransferViewModel @Inject constructor(
             val address = order.payment?.onchain?.address.orEmpty()
 
             // Use live spendableOnchainBalanceSats (not cached) to respect anchor reserves
-            val spendableBalance =
-                lightningRepo.getBalancesAsync().getOrNull()?.spendableOnchainBalanceSats ?: 0uL
+            val balanceDetails = lightningRepo.getBalancesAsync().getOrNull()
+            val spendableBalance = balanceDetails?.spendableOnchainBalanceSats ?: 0uL
             val sendAllFee = lightningRepo.estimateSendAllFee(
                 address = address,
                 speed = speed,
@@ -221,6 +221,24 @@ class TransferViewModel @Inject constructor(
             val shouldUseSendAll =
                 expectedChange >= 0 && expectedChange < TRANSFER_SEND_ALL_THRESHOLD_SATS
 
+            val miningFee = if (shouldUseSendAll) {
+                sendAllFee
+            } else {
+                lightningRepo.calculateTotalFee(
+                    amountSats = order.feeSat,
+                    address = address,
+                    speed = speed,
+                ).getOrElse {
+                    Logger.warn("Failed to estimate transfer funding fee", it, context = TAG)
+                    0uL
+                }
+            }
+            val txTotalSats = if (shouldUseSendAll) {
+                spendableBalance
+            } else {
+                order.feeSat.safe() + miningFee.safe()
+            }
+
             Logger.debug(
                 "BT confirm: spendable=$spendableBalance, feeSat=${order.feeSat}, " +
                     "sendAllFee=$sendAllFee, expectedChange=$expectedChange, sendAll=$shouldUseSendAll",
@@ -236,7 +254,14 @@ class TransferViewModel @Inject constructor(
                     channelId = order.channel?.shortChannelId,
                     isMaxAmount = shouldUseSendAll,
                 )
-                .onSuccess { txId -> fundPaidOrder(order, txId) }
+                .onSuccess { txId ->
+                    fundPaidOrder(
+                        order = order,
+                        txId = txId,
+                        txTotalSats = txTotalSats,
+                        preTransferOnchainSats = balanceDetails?.totalOnchainBalanceSats ?: spendableBalance,
+                    )
+                }
                 .onFailure { error ->
                     ToastEventBus.send(error)
                 }
@@ -250,6 +275,8 @@ class TransferViewModel @Inject constructor(
         createTransferActivity: Boolean = false,
         fee: ULong = 0uL,
         feeRate: ULong = 0uL,
+        txTotalSats: ULong? = null,
+        preTransferOnchainSats: ULong? = null,
     ) {
         cacheStore.addPaidOrder(orderId = order.id, txId = txId)
         transferRepo.createTransfer(
@@ -257,6 +284,8 @@ class TransferViewModel @Inject constructor(
             amountSats = order.clientBalanceSat.toLong(),
             fundingTxId = txId,
             lspOrderId = order.id,
+            txTotalSats = txTotalSats?.toLong(),
+            preTransferOnchainSats = preTransferOnchainSats?.toLong(),
         )
         if (createTransferActivity) {
             transferRepo.createPendingToSpendingActivity(
diff --git a/app/src/test/java/to/bitkit/models/BalanceStateTest.kt b/app/src/test/java/to/bitkit/models/BalanceStateTest.kt
index 808b3b70a8..fdad468ea9 100644
--- a/app/src/test/java/to/bitkit/models/BalanceStateTest.kt
+++ b/app/src/test/java/to/bitkit/models/BalanceStateTest.kt
@@ -11,6 +11,17 @@ class BalanceStateTest {
         assertEquals(150uL, state.totalSats)
     }
 
+    @Test
+    fun `totalSats includes balances in transfer`() {
+        val state = BalanceState(
+            totalOnchainSats = 100uL,
+            totalLightningSats = 50uL,
+            balanceInTransferToSavings = 10uL,
+            balanceInTransferToSpending = 15uL,
+        )
+        assertEquals(175uL, state.totalSats)
+    }
+
     @Test
     fun `totalHardwareSats sums all hardware wallet balances`() {
         val state = BalanceState(
@@ -27,9 +38,10 @@ class BalanceStateTest {
         val state = BalanceState(
             totalOnchainSats = 100uL,
             totalLightningSats = 50uL,
+            balanceInTransferToSpending = 15uL,
             hardwareWallets = listOf(HwWalletBalance(id = "dev1", sats = 25uL)),
         )
-        assertEquals(175uL, state.totalWithHardwareSats)
+        assertEquals(190uL, state.totalWithHardwareSats)
     }
 
     @Test
@@ -46,4 +58,13 @@ class BalanceStateTest {
         )
         assertEquals(ULong.MAX_VALUE, state.totalWithHardwareSats)
     }
+
+    @Test
+    fun `totalSats saturates instead of overflowing`() {
+        val state = BalanceState(
+            totalOnchainSats = ULong.MAX_VALUE,
+            balanceInTransferToSpending = 10uL,
+        )
+        assertEquals(ULong.MAX_VALUE, state.totalSats)
+    }
 }
diff --git a/app/src/test/java/to/bitkit/usecases/DeriveBalanceStateUseCaseTest.kt b/app/src/test/java/to/bitkit/usecases/DeriveBalanceStateUseCaseTest.kt
index 6174b5c5d0..1e52cb0990 100644
--- a/app/src/test/java/to/bitkit/usecases/DeriveBalanceStateUseCaseTest.kt
+++ b/app/src/test/java/to/bitkit/usecases/DeriveBalanceStateUseCaseTest.kt
@@ -95,6 +95,7 @@ class DeriveBalanceStateUseCaseTest : BaseUnitTest() {
             balanceState.totalLightningSats,
             "Lightning balance unchanged - channel not open yet"
         )
+        assertEquals(200_000uL, balanceState.totalSats)
     }
 
     @Test
@@ -211,6 +212,40 @@ class DeriveBalanceStateUseCaseTest : BaseUnitTest() {
             balanceState.totalLightningSats,
             "Lightning balance reduced - pending channel not ready"
         )
+        assertEquals(150_000uL, balanceState.totalSats)
+    }
+
+    @Test
+    fun `should subtract LSP funding transaction while onchain balance has not synced`() = test {
+        val initialOnchainSats = 86_901uL
+        val transferSats = 20_212uL
+        val txTotalSats = 25_809uL
+        val balance = newBalanceDetails().copy(
+            totalOnchainBalanceSats = initialOnchainSats,
+            totalLightningBalanceSats = 0uL,
+        )
+        whenever(lightningRepo.getBalancesAsync()).thenReturn(Result.success(balance))
+        val transfers = listOf(
+            newTransferEntity(
+                type = TransferType.TO_SPENDING,
+                amountSats = transferSats.toLong(),
+                fundingTxId = "funding-tx-id",
+                lspOrderId = "lsp-order-id",
+                txTotalSats = txTotalSats.toLong(),
+                preTransferOnchainSats = initialOnchainSats.toLong(),
+            )
+        )
+
+        whenever(lightningRepo.getChannels()).thenReturn(emptyList())
+        whenever(transferRepo.activeTransfers).thenReturn(flowOf(transfers))
+
+        val result = sut()
+
+        assertTrue(result.isSuccess)
+        val balanceState = result.getOrThrow()
+        assertEquals(61_092uL, balanceState.totalOnchainSats)
+        assertEquals(transferSats, balanceState.balanceInTransferToSpending)
+        assertEquals(81_304uL, balanceState.totalSats)
     }
 
     @Test
@@ -251,6 +286,7 @@ class DeriveBalanceStateUseCaseTest : BaseUnitTest() {
             balanceState.totalLightningSats,
             "Lightning balance reduced while the discovered LSP channel is still pending"
         )
+        assertEquals(150_000uL, balanceState.totalSats)
     }
 
     @Test
@@ -294,6 +330,7 @@ class DeriveBalanceStateUseCaseTest : BaseUnitTest() {
         val balanceState = result.getOrThrow()
         assertEquals(amountSats, balanceState.balanceInTransferToSpending)
         assertEquals(0uL, balanceState.totalLightningSats)
+        assertEquals(150_000uL, balanceState.totalSats)
     }
 
     @Test
@@ -590,6 +627,7 @@ class DeriveBalanceStateUseCaseTest : BaseUnitTest() {
             balanceState.totalLightningSats,
             "Lightning reduced by manual channel (30k) + transfer to savings (20k)"
         )
+        assertEquals(150_000uL, balanceState.totalSats)
     }
 
     private suspend fun newBalanceDetails() = BalanceDetails(
@@ -632,6 +670,8 @@ class DeriveBalanceStateUseCaseTest : BaseUnitTest() {
         channelId: String? = null,
         fundingTxId: String? = null,
         lspOrderId: String? = null,
+        txTotalSats: Long? = null,
+        preTransferOnchainSats: Long? = null,
     ) = TransferEntity(
         id = "test-transfer-${System.currentTimeMillis()}",
         type = type,
@@ -641,5 +681,7 @@ class DeriveBalanceStateUseCaseTest : BaseUnitTest() {
         lspOrderId = lspOrderId,
         isSettled = false,
         createdAt = System.currentTimeMillis(),
+        txTotalSats = txTotalSats,
+        preTransferOnchainSats = preTransferOnchainSats,
     )
 }
diff --git a/app/src/test/java/to/bitkit/viewmodels/TransferViewModelTest.kt b/app/src/test/java/to/bitkit/viewmodels/TransferViewModelTest.kt
index f6bc83f01e..54f54d56f5 100644
--- a/app/src/test/java/to/bitkit/viewmodels/TransferViewModelTest.kt
+++ b/app/src/test/java/to/bitkit/viewmodels/TransferViewModelTest.kt
@@ -241,6 +241,8 @@ class TransferViewModelTest : BaseUnitTest() {
             eq(TXID),
             eq(order.id),
             isNull<UInt>(),
+            isNull<Long>(),
+            isNull<Long>(),
         )
         verify(transferRepo).createPendingToSpendingActivity(
             eq(order),
diff --git a/changelog.d/next/1058.fixed.md b/changelog.d/next/1058.fixed.md
new file mode 100644
index 0000000000..2fc484f543
--- /dev/null
+++ b/changelog.d/next/1058.fixed.md
@@ -0,0 +1 @@
+Pending transfer funds now stay reflected in the total balance without temporarily inflating it while moving between savings and spending.