diff --git a/helix-term/src/ui/overlay.rs b/helix-term/src/ui/overlay.rs
index 2fa643ab6..ff184d407 100644
--- a/helix-term/src/ui/overlay.rs
+++ b/helix-term/src/ui/overlay.rs
@@ -15,10 +15,30 @@ pub struct Overlay<T> {
     pub calc_child_size: Box<dyn Fn(Rect) -> Rect>,
 }
 
+/// Surrounds the component with a margin of 5% on each side, and an additional 2 rows at the bottom
 pub fn overlaid<T>(content: T) -> Overlay<T> {
     Overlay {
         content,
-        calc_child_size: Box::new(|rect: Rect| rect),
+        calc_child_size: Box::new(|rect: Rect| clip_rect_relative(rect.clip_bottom(2), 90, 90)),
+    }
+}
+
+fn clip_rect_relative(rect: Rect, percent_horizontal: u8, percent_vertical: u8) -> Rect {
+    fn mul_and_cast(size: u16, factor: u8) -> u16 {
+        ((size as u32) * (factor as u32) / 100).try_into().unwrap()
+    }
+
+    let inner_w = mul_and_cast(rect.width, percent_horizontal);
+    let inner_h = mul_and_cast(rect.height, percent_vertical);
+
+    let offset_x = rect.width.saturating_sub(inner_w) / 2;
+    let offset_y = rect.height.saturating_sub(inner_h) / 2;
+
+    Rect {
+        x: rect.x + offset_x,
+        y: rect.y + offset_y,
+        width: inner_w,
+        height: inner_h,
     }
 }