diff --git a/include/sway/tree/container.h b/include/sway/tree/container.h
index f7a4ac37..d2508994 100644
--- a/include/sway/tree/container.h
+++ b/include/sway/tree/container.h
@@ -212,6 +212,9 @@ void container_update_representation(struct sway_container *container);
  */
 size_t container_titlebar_height(void);
 
+void floating_calculate_constraints(int *min_width, int *max_width,
+		int *min_height, int *max_height);
+
 /**
  * Resize and center the container in its workspace.
  */
diff --git a/sway/commands/resize.c b/sway/commands/resize.c
index c9261535..440937f0 100644
--- a/sway/commands/resize.c
+++ b/sway/commands/resize.c
@@ -66,45 +66,6 @@ static int parse_resize_amount(int argc, char **argv,
 	return 2;
 }
 
-static void calculate_constraints(int *min_width, int *max_width,
-		int *min_height, int *max_height) {
-	struct sway_container *con = config->handler_context.container;
-
-	if (config->floating_minimum_width == -1) { // no minimum
-		*min_width = 0;
-	} else if (config->floating_minimum_width == 0) { // automatic
-		*min_width = 75;
-	} else {
-		*min_width = config->floating_minimum_width;
-	}
-
-	if (config->floating_minimum_height == -1) { // no minimum
-		*min_height = 0;
-	} else if (config->floating_minimum_height == 0) { // automatic
-		*min_height = 50;
-	} else {
-		*min_height = config->floating_minimum_height;
-	}
-
-	if (config->floating_maximum_width == -1 ||
-			container_is_scratchpad_hidden(con)) { // no max
-		*max_width = INT_MAX;
-	} else if (config->floating_maximum_width == 0) { // automatic
-		*max_width = con->workspace->width;
-	} else {
-		*max_width = config->floating_maximum_width;
-	}
-
-	if (config->floating_maximum_height == -1 ||
-			container_is_scratchpad_hidden(con)) { // no max
-		*max_height = INT_MAX;
-	} else if (config->floating_maximum_height == 0) { // automatic
-		*max_height = con->workspace->height;
-	} else {
-		*max_height = config->floating_maximum_height;
-	}
-}
-
 static uint32_t parse_resize_axis(const char *axis) {
 	if (strcasecmp(axis, "width") == 0 || strcasecmp(axis, "horizontal") == 0) {
 		return AXIS_HORIZONTAL;
@@ -258,7 +219,8 @@ static struct cmd_results *resize_adjust_floating(uint32_t axis,
 
 	// Make sure we're not adjusting beyond floating min/max size
 	int min_width, max_width, min_height, max_height;
-	calculate_constraints(&min_width, &max_width, &min_height, &max_height);
+	floating_calculate_constraints(&min_width, &max_width,
+			&min_height, &max_height);
 	if (con->width + grow_width < min_width) {
 		grow_width = min_width - con->width;
 	} else if (con->width + grow_width > max_width) {
@@ -383,7 +345,8 @@ static struct cmd_results *resize_set_tiled(struct sway_container *con,
 static struct cmd_results *resize_set_floating(struct sway_container *con,
 		struct resize_amount *width, struct resize_amount *height) {
 	int min_width, max_width, min_height, max_height, grow_width = 0, grow_height = 0;
-	calculate_constraints(&min_width, &max_width, &min_height, &max_height);
+	floating_calculate_constraints(&min_width, &max_width,
+			&min_height, &max_height);
 
 	if (width->amount) {
 		switch (width->unit) {
diff --git a/sway/input/seatop_resize_floating.c b/sway/input/seatop_resize_floating.c
index bf6c7ab4..18c6db73 100644
--- a/sway/input/seatop_resize_floating.c
+++ b/sway/input/seatop_resize_floating.c
@@ -17,41 +17,6 @@ struct seatop_resize_floating_event {
 	double ref_con_lx, ref_con_ly; // container's x/y at start of op
 };
 
-static void calculate_floating_constraints(struct sway_container *con,
-		int *min_width, int *max_width, int *min_height, int *max_height) {
-	if (config->floating_minimum_width == -1) { // no minimum
-		*min_width = 0;
-	} else if (config->floating_minimum_width == 0) { // automatic
-		*min_width = 75;
-	} else {
-		*min_width = config->floating_minimum_width;
-	}
-
-	if (config->floating_minimum_height == -1) { // no minimum
-		*min_height = 0;
-	} else if (config->floating_minimum_height == 0) { // automatic
-		*min_height = 50;
-	} else {
-		*min_height = config->floating_minimum_height;
-	}
-
-	if (config->floating_maximum_width == -1) { // no maximum
-		*max_width = INT_MAX;
-	} else if (config->floating_maximum_width == 0) { // automatic
-		*max_width = con->workspace->width;
-	} else {
-		*max_width = config->floating_maximum_width;
-	}
-
-	if (config->floating_maximum_height == -1) { // no maximum
-		*max_height = INT_MAX;
-	} else if (config->floating_maximum_height == 0) { // automatic
-		*max_height = con->workspace->height;
-	} else {
-		*max_height = config->floating_maximum_height;
-	}
-}
-
 static void handle_motion(struct sway_seat *seat, uint32_t time_msec) {
 	struct seatop_resize_floating_event *e = seat->seatop_data;
 	struct sway_container *con = e->con;
@@ -85,7 +50,7 @@ static void handle_motion(struct sway_seat *seat, uint32_t time_msec) {
 	double width = e->ref_width + grow_width;
 	double height = e->ref_height + grow_height;
 	int min_width, max_width, min_height, max_height;
-	calculate_floating_constraints(con, &min_width, &max_width,
+	floating_calculate_constraints(&min_width, &max_width,
 			&min_height, &max_height);
 	width = fmax(min_width, fmin(width, max_width));
 	height = fmax(min_height, fmin(height, max_height));
diff --git a/sway/sway.5.scd b/sway/sway.5.scd
index 8f8b7e3d..4f4522fb 100644
--- a/sway/sway.5.scd
+++ b/sway/sway.5.scd
@@ -430,7 +430,8 @@ The default colors are:
 
 *floating_maximum_size* <width> x <height>
 	Specifies the maximum size of floating windows. -1 x -1 removes the upper
-	limit.
+	limit. The default is 0 x 0, which will use the width and height of the
+	entire output layout as the maximums
 
 *floating_minimum_size* <width> x <height>
 	Specifies the minimum size of floating windows. The default is 75 x 50.
diff --git a/sway/tree/container.c b/sway/tree/container.c
index d448df22..33043941 100644
--- a/sway/tree/container.c
+++ b/sway/tree/container.c
@@ -611,56 +611,78 @@ size_t container_titlebar_height(void) {
 	return config->font_height + config->titlebar_v_padding * 2;
 }
 
-void container_init_floating(struct sway_container *con) {
-	struct sway_workspace *ws = con->workspace;
-	int min_width, min_height;
-	int max_width, max_height;
-
+void floating_calculate_constraints(int *min_width, int *max_width,
+		int *min_height, int *max_height) {
 	if (config->floating_minimum_width == -1) { // no minimum
-		min_width = 0;
+		*min_width = 0;
 	} else if (config->floating_minimum_width == 0) { // automatic
-		min_width = 75;
+		*min_width = 75;
 	} else {
-		min_width = config->floating_minimum_width;
+		*min_width = config->floating_minimum_width;
 	}
 
 	if (config->floating_minimum_height == -1) { // no minimum
-		min_height = 0;
+		*min_height = 0;
 	} else if (config->floating_minimum_height == 0) { // automatic
-		min_height = 50;
+		*min_height = 50;
 	} else {
-		min_height = config->floating_minimum_height;
+		*min_height = config->floating_minimum_height;
 	}
 
+	struct wlr_box *box = wlr_output_layout_get_box(root->output_layout, NULL);
+
 	if (config->floating_maximum_width == -1) { // no maximum
-		max_width = INT_MAX;
+		*max_width = INT_MAX;
 	} else if (config->floating_maximum_width == 0) { // automatic
-		max_width = ws->width * 0.6666;
+		*max_width = box->width;
 	} else {
-		max_width = config->floating_maximum_width;
+		*max_width = config->floating_maximum_width;
 	}
 
 	if (config->floating_maximum_height == -1) { // no maximum
-		max_height = INT_MAX;
+		*max_height = INT_MAX;
 	} else if (config->floating_maximum_height == 0) { // automatic
-		max_height = ws->height * 0.6666;
+		*max_height = box->height;
 	} else {
-		max_height = config->floating_maximum_height;
+		*max_height = config->floating_maximum_height;
 	}
 
+}
+
+void container_init_floating(struct sway_container *con) {
+	struct sway_workspace *ws = con->workspace;
+	int min_width, max_width, min_height, max_height;
+	floating_calculate_constraints(&min_width, &max_width,
+			&min_height, &max_height);
+
 	if (!con->view) {
 		con->width = max_width;
 		con->height = max_height;
-		con->x = ws->x + (ws->width - con->width) / 2;
-		con->y = ws->y + (ws->height - con->height) / 2;
+		if (con->width > ws->width || con->height > ws->height) {
+			struct wlr_box *ob = wlr_output_layout_get_box(root->output_layout,
+					ws->output->wlr_output);
+			con->x = ob->x + (ob->width - con->width) / 2;
+			con->y = ob->y + (ob->height - con->height) / 2;
+		} else {
+			con->x = ws->x + (ws->width - con->width) / 2;
+			con->y = ws->y + (ws->height - con->height) / 2;
+		}
 	} else {
 		struct sway_view *view = con->view;
 		con->content_width =
 			fmax(min_width, fmin(view->natural_width, max_width));
 		con->content_height =
 			fmax(min_height, fmin(view->natural_height, max_height));
-		con->content_x = ws->x + (ws->width - con->content_width) / 2;
-		con->content_y = ws->y + (ws->height - con->content_height) / 2;
+		if (con->content_width > ws->width
+				|| con->content_height > ws->height) {
+			struct wlr_box *ob = wlr_output_layout_get_box(root->output_layout,
+					ws->output->wlr_output);
+			con->content_x = ob->x + (ob->width - con->content_width) / 2;
+			con->content_y = ob->y + (ob->height - con->content_height) / 2;
+		} else {
+			con->content_x = ws->x + (ws->width - con->content_width) / 2;
+			con->content_y = ws->y + (ws->height - con->content_height) / 2;
+		}
 
 		// If the view's border is B_NONE then these properties are ignored.
 		con->border_top = con->border_bottom = true;