diff --git a/src/darksend.cpp b/src/darksend.cpp
index 51e203880c6ef..c141d6efd9e1e 100644
--- a/src/darksend.cpp
+++ b/src/darksend.cpp
@@ -1400,10 +1400,9 @@ bool CDarksendPool::DoAutomaticDenominating(bool fDryRun)
     CAmount nOnlyDenominatedBalance;
     CAmount nBalanceNeedsDenominated;
 
-    // should not be less than fees in DARKSEND_COLLATERAL + few (lets say 5) smallest denoms
-    CAmount nLowestDenom = DARKSEND_COLLATERAL + darkSendDenominations[darkSendDenominations.size() - 1]*5;
+    CAmount nLowestDenom = darkSendDenominations[darkSendDenominations.size() - 1];
 
-    // if there are no DS collateral inputs yet
+    // if there are no confirmed DS collateral inputs yet
     if(!pwalletMain->HasCollateralInputs())
         // should have some additional amount for them
         nLowestDenom += DARKSEND_COLLATERAL*4;
@@ -1413,17 +1412,22 @@ bool CDarksendPool::DoAutomaticDenominating(bool fDryRun)
     // if balanceNeedsAnonymized is more than pool max, take the pool max
     if(nBalanceNeedsAnonymized > DARKSEND_POOL_MAX) nBalanceNeedsAnonymized = DARKSEND_POOL_MAX;
 
-    // if balanceNeedsAnonymized is more than non-anonymized, take non-anonymized
+    // try to overshoot target DS balance up to nLowestDenom
+    nBalanceNeedsAnonymized += nLowestDenom;
+
     CAmount nAnonymizableBalance = pwalletMain->GetAnonymizableBalance();
-    if(nBalanceNeedsAnonymized > nAnonymizableBalance) nBalanceNeedsAnonymized = nAnonymizableBalance;
 
-    if(nBalanceNeedsAnonymized < nLowestDenom)
+    // anonymizable balance is way too small
+    if(nAnonymizableBalance < nLowestDenom)
     {
         LogPrintf("DoAutomaticDenominating : No funds detected in need of denominating \n");
         strAutoDenomResult = _("No funds detected in need of denominating.");
         return false;
     }
 
+    // not enough funds to anonymze amount we want, try the max we can
+    if(nBalanceNeedsAnonymized > nAnonymizableBalance) nBalanceNeedsAnonymized = nAnonymizableBalance;
+
     LogPrint("darksend", "DoAutomaticDenominating : nLowestDenom=%d, nBalanceNeedsAnonymized=%d\n", nLowestDenom, nBalanceNeedsAnonymized);
 
     // select coins that should be given to the pool
@@ -1479,7 +1483,7 @@ bool CDarksendPool::DoAutomaticDenominating(bool fDryRun)
             return false;
         }
 
-        //check our collateral nad create new if needed
+        //check our collateral and create new if needed
         std::string strReason;
         CValidationState state;
         if(txCollateral == CMutableTransaction()){
@@ -1767,7 +1771,7 @@ bool CDarksendPool::CreateDenominated(int64_t nTotalValue)
         int nOutputs = 0;
 
         // add each output up to 10 times until it can't be added again
-        while(nValueLeft - v >= DARKSEND_COLLATERAL && nOutputs <= 10) {
+        while(nValueLeft - v >= 0 && nOutputs <= 10) {
             CScript scriptDenom;
             CPubKey vchPubKey;
             //use a unique change address
diff --git a/src/wallet.h b/src/wallet.h
index f65ed8b9832ae..08e5e064a823a 100644
--- a/src/wallet.h
+++ b/src/wallet.h
@@ -902,7 +902,11 @@ class CWalletTx : public CMerkleTx
             const CTxIn vin = CTxIn(hashTx, i);
 
             if(pwallet->IsSpent(hashTx, i) || pwallet->IsLockedCoin(hashTx, i)) continue;
-            if(fMasterNode && vout[i].nValue == 1000*COIN) continue; // do not count MN-like outputs
+            // do not count MN-like outputs
+            if(fMasterNode && vout[i].nValue == 1000*COIN) continue;
+            // do not count outputs that are 10 times smaller then the smallest denomination
+            // otherwise they will just lead to higher fee / lower priority
+            if(vout[i].nValue <= darkSendDenominations[darkSendDenominations.size() - 1]/10) continue;
 
             const int rounds = pwallet->GetInputDarksendRounds(vin);
             if(rounds >=-2 && rounds < nDarksendRounds) {