diff --git a/input/overlay.c b/input/overlay.c
index 5185f68ad8..68b75a1050 100644
--- a/input/overlay.c
+++ b/input/overlay.c
@@ -190,12 +190,17 @@ static void input_overlay_scale(struct overlay *overlay, float scale)
    for (size_t i = 0; i < overlay->size; i++)
    {
       struct overlay_desc *desc = &overlay->descs[i];
-      desc->mod_w = 2.0f * scale * desc->range_x;
-      desc->mod_h = 2.0f * scale * desc->range_y;
-      float center_x = (desc->x - overlay->center_x) * scale + overlay->center_x;
-      float center_y = (desc->y - overlay->center_y) * scale + overlay->center_y;
-      desc->mod_x = center_x - scale * desc->range_x;
-      desc->mod_y = center_y - scale * desc->range_y;
+
+      float scale_w = overlay->mod_w * desc->range_x;
+      float scale_h = overlay->mod_h * desc->range_y;
+
+      desc->mod_w = 2.0f * scale_w;
+      desc->mod_h = 2.0f * scale_h;
+
+      float adj_center_x = overlay->mod_x + desc->x * overlay->mod_w;
+      float adj_center_y = overlay->mod_y + desc->y * overlay->mod_h;
+      desc->mod_x = adj_center_x - scale_w;
+      desc->mod_y = adj_center_y - scale_h;
    }
 }
 
@@ -658,7 +663,7 @@ input_overlay_t *input_overlay_new(const char *overlay)
    ol->enable = true;
 
    input_overlay_set_alpha_mod(ol, g_settings.input.overlay_opacity);
-   input_overlay_set_scale_factor(ol, 1.0f);
+   input_overlay_set_scale_factor(ol, g_settings.input.overlay_scale);
    ol->next_index = (ol->index + 1) % ol->size;
 
    return ol;
diff --git a/media/overlays/example/example.cfg b/media/overlays/example/example.cfg
index e3c7b6793b..c9545599b1 100644
--- a/media/overlays/example/example.cfg
+++ b/media/overlays/example/example.cfg
@@ -1,22 +1,22 @@
-overlays = 1
-# overlay0_overlay omitted. We don't need to splat an overlay across the screen.
-overlay0_rect = "0.50,0.50,0.50,0.50" # Place entire overlay in bottom right part of screen.
-overlay0_full_screen = true
-
-# These set defaults across the entire overlay. They can be overridden per-desc with overlayN_descM_alpha_mod = foo, etc.
-overlay0_alpha_mod = 2.0 # If we press a button desc, it will have twice the alpha.
-overlay0_range_mod = 1.5 # If we press a button desc, the hitbox range will be 1.5x the size until it's released.
-overlay0_normalized = true # Descriptor coordinates use normalized coordinates [0, 1] instead of pixels.
-
-overlay0_descs = 5
-overlay0_desc0_overlay = left.png
-overlay0_desc1_overlay = right.png
-overlay0_desc2_overlay = up.png
-overlay0_desc3_overlay = down.png
-overlay0_desc0 = "left,0.25,0.50,rect,0.125,0.125"
-overlay0_desc1 = "right,0.75,0.50,rect,0.125,0.125"
-overlay0_desc2 = "up,0.50,0.25,rect,0.125,0.125"
-overlay0_desc3 = "down,0.50,0.75,rect,0.125,0.125"
-
-overlay0_desc4 = "nul,0.30,0.90,rect,0.28,0.08" # Paste an arbitrary image. Input associated with this is nul.
-overlay0_desc4_overlay = logo.png
+overlays = 1
+# overlay0_overlay omitted. We don't need to splat an overlay across the screen.
+overlay0_rect = "0.35,0.35,0.65,0.65" # Place overlay somewhere.
+overlay0_full_screen = true
+
+# These set defaults across the entire overlay. They can be overridden per-desc with overlayN_descM_alpha_mod = foo, etc.
+overlay0_alpha_mod = 2.0 # If we press a button desc, it will have twice the alpha.
+overlay0_range_mod = 1.5 # If we press a button desc, the hitbox range will be 1.5x the size until it's released.
+overlay0_normalized = true # Descriptor coordinates use normalized coordinates [0, 1] instead of pixels.
+
+overlay0_descs = 5
+overlay0_desc0_overlay = left.png
+overlay0_desc1_overlay = right.png
+overlay0_desc2_overlay = up.png
+overlay0_desc3_overlay = down.png
+overlay0_desc0 = "left,0.25,0.50,rect,0.125,0.125"
+overlay0_desc1 = "right,0.75,0.50,rect,0.125,0.125"
+overlay0_desc2 = "up,0.50,0.25,rect,0.125,0.125"
+overlay0_desc3 = "down,0.50,0.75,rect,0.125,0.125"
+
+overlay0_desc4 = "nul,0.30,0.90,rect,0.28,0.08" # Paste an arbitrary image. Input associated with this is nul.
+overlay0_desc4_overlay = logo.png