diff --git a/config/default.js b/config/default.js
index 6acc7138f19..8ce966a9b7d 100644
--- a/config/default.js
+++ b/config/default.js
@@ -102,7 +102,8 @@ module.exports = {
   invoices: {
     expire: 3600,
     baseRetryDelay: 1000,
-    retryCount: 3, // Number of retries for pay invoice failure
+    retryCount: 2, // Number of retries for pay invoice failure
+    feeIncrementExponent: 1.1, // Exponent applied to fee limit on payment retry attempts
   },
 
   autopay: {
diff --git a/renderer/components/Pay/Pay.js b/renderer/components/Pay/Pay.js
index 64518b4d118..10fe6dc6420 100644
--- a/renderer/components/Pay/Pay.js
+++ b/renderer/components/Pay/Pay.js
@@ -6,7 +6,14 @@ import get from 'lodash/get'
 import { Box, Flex } from 'rebass'
 import { animated, Keyframes, Transition } from 'react-spring/renderprops.cjs'
 import { FormattedMessage, injectIntl, intlShape } from 'react-intl'
-import { decodePayReq, getMinFee, getMaxFee, isOnchain, isLn } from '@zap/utils/crypto'
+import {
+  decodePayReq,
+  getMinFee,
+  getMaxFee,
+  getMaxFeeInclusive,
+  isOnchain,
+  isLn,
+} from '@zap/utils/crypto'
 import { convert } from '@zap/utils/btc'
 import {
   Bar,
@@ -559,10 +566,10 @@ class Pay extends React.Component {
 
     const formState = this.formApi.getState()
     const { speed, payReq, isCoinSweep } = formState.values
-    let minFee, maxFee
+    let minFee, maxFeeInclusive
     if (routes.length) {
       minFee = getMinFee(routes)
-      maxFee = getMaxFee(routes)
+      maxFeeInclusive = getMaxFeeInclusive(routes)
     }
     const render = () => {
       // convert entered amount to satoshis
@@ -584,7 +591,7 @@ class Pay extends React.Component {
         return (
           <PaySummaryLightning
             amount={amount}
-            maxFee={maxFee}
+            maxFee={maxFeeInclusive}
             minFee={minFee}
             mt={-3}
             payReq={payReq}
diff --git a/renderer/reducers/payment.js b/renderer/reducers/payment.js
index b86100f27e8..2a4fff2312e 100644
--- a/renderer/reducers/payment.js
+++ b/renderer/reducers/payment.js
@@ -33,6 +33,10 @@ export const PAYMENT_SUCCESSFUL = 'PAYMENT_SUCCESSFUL'
 export const PAYMENT_FAILED = 'PAYMENT_FAILED'
 export const DECREASE_PAYMENT_RETRIES = 'DECREASE_PAYMENT_RETRIES'
 
+const PAYMENT_STATUS_SENDING = 'sending'
+const PAYMENT_STATUS_SUCCESSFUL = 'successful'
+const PAYMENT_STATUS_FAILED = 'failed'
+
 // ------------------------------------
 // Helpers
 // ------------------------------------
@@ -105,8 +109,14 @@ const getLastSendingEntry = (state, paymentRequest) =>
  */
 const handleDecreaseRetries = (state, { paymentRequest }) => {
   const paymentsSending = state.paymentsSending.map(payment => {
-    if (payment.paymentRequest === paymentRequest) {
-      return { ...payment, remainingRetries: payment.remainingRetries - 1 }
+    if (payment.paymentRequest === paymentRequest && payment.status === PAYMENT_STATUS_SENDING) {
+      return {
+        ...payment,
+        remainingRetries: payment.remainingRetries - 1,
+        feeLimit: payment.feeLimit
+          ? Math.ceil(payment.feeLimit * config.invoices.feeIncrementExponent)
+          : payment.feeLimit,
+      }
     }
     return payment
   })
@@ -162,7 +172,7 @@ export const sendPayment = data => dispatch => {
 
   const payment = {
     ...data,
-    status: 'sending',
+    status: PAYMENT_STATUS_SENDING,
     isSending: true,
     creation_date: Math.round(new Date() / 1000),
     payment_hash: paymentHashTag.data,
@@ -308,6 +318,7 @@ export const paymentFailed = ({ payment_request, error }) => async (dispatch, ge
   const paymentSending = getLastSendingEntry(state, payment_request)
   // errors that trigger retry mechanism
   const RETRIABLE_ERRORS = [
+    'payment attempt not completed before timeout', // ErrPaymentAttemptTimeout
     'unable to find a path to destination', // ErrNoPathFound
     'target not found', // ErrTargetNotInNetwork
   ]
@@ -365,7 +376,7 @@ const ACTION_HANDLERS = {
         }
         return {
           ...item,
-          status: 'successful',
+          status: PAYMENT_STATUS_SUCCESSFUL,
         }
       }),
     }
@@ -379,7 +390,7 @@ const ACTION_HANDLERS = {
         }
         return {
           ...item,
-          status: 'failed',
+          status: PAYMENT_STATUS_FAILED,
           error,
         }
       }),
diff --git a/utils/crypto.js b/utils/crypto.js
index b0f070e3e39..0b260408615 100644
--- a/utils/crypto.js
+++ b/utils/crypto.js
@@ -1,4 +1,6 @@
 import get from 'lodash/get'
+import config from 'config'
+import range from 'lodash/range'
 import { address } from 'bitcoinjs-lib'
 import lightningRequestReq from 'bolt11'
 import coininfo from 'coininfo'
@@ -172,9 +174,9 @@ export const getNodeAlias = (pubkey, nodes = []) => {
 }
 
 /**
- * getMinFee - Given a list of routest, find the minimum fee.
+ * getMinFee - Given a list of routes, find the minimum fee.
  *
- * @param {*} routes List of routes
+ * @param {Array} routes List of routes
  * @returns {number} minimum fee rounded up to the nearest satoshi
  */
 export const getMinFee = (routes = []) => {
@@ -188,9 +190,9 @@ export const getMinFee = (routes = []) => {
 }
 
 /**
- * getMaxFee - Given a list of routest, find the maximum fee.
+ * getMaxFee - Given a list of routes, find the maximum fee.
  *
- * @param {*} routes List of routes
+ * @param {Array} routes List of routes
  * @returns {number} maximum fee
  */
 export const getMaxFee = routes => {
@@ -203,10 +205,29 @@ export const getMaxFee = routes => {
   return fee + 1
 }
 
+/**
+ * getMaxFee - Given a list of routes, find the maximum fee factoring in all possible payment retry attempts.
+ *
+ * @param {Array} routes List of routes
+ * @returns {number} maximum fee
+ */
+export const getMaxFeeInclusive = routes => {
+  if (!routes || !routes.length) {
+    return null
+  }
+
+  const {
+    invoices: { retryCount, feeIncrementExponent },
+  } = config
+
+  const fee = getMaxFee(routes)
+  return range(retryCount).reduce(max => Math.ceil(max * feeIncrementExponent), fee)
+}
+
 /**
  * getFeeRange - Given a list of routest, find the maximum and maximum fee.
  *
- * @param {*} routes List of routes
+ * @param {Array} routes List of routes
  * @returns {{min:number, max:number}} object with keys `min` and `max`
  */
 export const getFeeRange = (routes = []) => ({