diff --git a/src/dxvk/dxvk_adapter.cpp b/src/dxvk/dxvk_adapter.cpp
index f18a4a36..1c57fbfb 100644
--- a/src/dxvk/dxvk_adapter.cpp
+++ b/src/dxvk/dxvk_adapter.cpp
@@ -12,7 +12,6 @@ namespace dxvk {
           VkPhysicalDevice    handle)
   : m_vki           (vki),
     m_handle        (handle) {
-    this->initHeapAllocInfo();
     this->queryExtensions();
     this->queryDeviceInfo();
     this->queryDeviceFeatures();
@@ -42,11 +41,16 @@ namespace dxvk {
       info.heaps[i].heapSize = memProps.memoryProperties.memoryHeaps[i].size;
 
       if (m_hasMemoryBudget) {
+        // Handle DXVK's memory allocations separately so that
+        // freeing  resources actually is visible to applications.
+        VkDeviceSize allocated = m_memoryAllocated[i].load();
+        VkDeviceSize used = m_memoryUsed[i].load();
+
         info.heaps[i].memoryBudget    = memBudget.heapBudget[i];
-        info.heaps[i].memoryAllocated = memBudget.heapUsage[i];
+        info.heaps[i].memoryAllocated = std::max(memBudget.heapUsage[i], allocated) - allocated + used;
       } else {
         info.heaps[i].memoryBudget    = memProps.memoryProperties.memoryHeaps[i].size;
-        info.heaps[i].memoryAllocated = m_heapAlloc[i].load();
+        info.heaps[i].memoryAllocated = m_memoryUsed[i].load();
       }
     }
 
@@ -657,19 +661,19 @@ namespace dxvk {
   }
   
   
-  void DxvkAdapter::notifyHeapMemoryAlloc(
+  void DxvkAdapter::notifyMemoryAlloc(
           uint32_t            heap,
-          VkDeviceSize        bytes) {
-    if (!m_hasMemoryBudget)
-      m_heapAlloc[heap] += bytes;
+          int64_t             bytes) {
+    if (heap < m_memoryAllocated.size())
+      m_memoryAllocated[heap] += bytes;
   }
 
-  
-  void DxvkAdapter::notifyHeapMemoryFree(
+
+  void DxvkAdapter::notifyMemoryUse(
           uint32_t            heap,
-          VkDeviceSize        bytes) {
-    if (!m_hasMemoryBudget)
-      m_heapAlloc[heap] -= bytes;
+          int64_t             bytes) {
+    if (heap < m_memoryUsed.size())
+      m_memoryUsed[heap] += bytes;
   }
 
 
@@ -729,12 +733,6 @@ namespace dxvk {
   }
   
   
-  void DxvkAdapter::initHeapAllocInfo() {
-    for (uint32_t i = 0; i < m_heapAlloc.size(); i++)
-      m_heapAlloc[i] = 0;
-  }
-
-
   void DxvkAdapter::queryExtensions() {
     m_deviceExtensions = DxvkNameSet::enumDeviceExtensions(m_vki, m_handle);
   }
diff --git a/src/dxvk/dxvk_adapter.h b/src/dxvk/dxvk_adapter.h
index e70cecd6..3dcdec2a 100644
--- a/src/dxvk/dxvk_adapter.h
+++ b/src/dxvk/dxvk_adapter.h
@@ -197,26 +197,26 @@ namespace dxvk {
             DxvkDeviceFeatures  enabledFeatures);
     
     /**
-     * \brief Registers memory allocation
+     * \brief Registers heap memory allocation
      * 
      * Updates memory alloc info accordingly.
      * \param [in] heap Memory heap index
      * \param [in] bytes Allocation size
      */
-    void notifyHeapMemoryAlloc(
+    void notifyMemoryAlloc(
             uint32_t            heap,
-            VkDeviceSize        bytes);
+            int64_t             bytes);
     
     /**
-     * \brief Registers memory deallocation
+     * \brief Registers memory suballocation
      * 
      * Updates memory alloc info accordingly.
      * \param [in] heap Memory heap index
      * \param [in] bytes Allocation size
      */
-    void notifyHeapMemoryFree(
+    void notifyMemoryUse(
             uint32_t            heap,
-            VkDeviceSize        bytes);
+            int64_t             bytes);
     
     /**
      * \brief Tests if the driver matches certain criteria
@@ -262,9 +262,9 @@ namespace dxvk {
     
     std::vector<VkQueueFamilyProperties> m_queueFamilies;
 
-    std::array<std::atomic<VkDeviceSize>, VK_MAX_MEMORY_HEAPS> m_heapAlloc;
+    std::array<std::atomic<uint64_t>, VK_MAX_MEMORY_HEAPS> m_memoryAllocated = { };
+    std::array<std::atomic<uint64_t>, VK_MAX_MEMORY_HEAPS> m_memoryUsed = { };
 
-    void initHeapAllocInfo();
     void queryExtensions();
     void queryDeviceInfo();
     void queryDeviceFeatures();
diff --git a/src/dxvk/dxvk_device.h b/src/dxvk/dxvk_device.h
index 659353d5..b252a843 100644
--- a/src/dxvk/dxvk_device.h
+++ b/src/dxvk/dxvk_device.h
@@ -393,6 +393,30 @@ namespace dxvk {
      */
     uint32_t getCurrentFrameId() const;
     
+    /**
+     * \brief Notifies adapter about memory allocation
+     *
+     * \param [in] heap Memory heap index
+     * \param [in] bytes Allocation size
+     */
+    void notifyMemoryAlloc(
+            uint32_t            heap,
+            int64_t             bytes) {
+      m_adapter->notifyMemoryUse(heap, bytes);
+    }
+
+    /**
+     * \brief Notifies adapter about memory suballocation
+     *
+     * \param [in] heap Memory heap index
+     * \param [in] bytes Allocation size
+     */
+    void notifyMemoryUse(
+            uint32_t            heap,
+            int64_t             bytes) {
+      m_adapter->notifyMemoryUse(heap, bytes);
+    }
+
     /**
      * \brief Registers a shader
      * \param [in] shader Newly compiled shader
diff --git a/src/dxvk/dxvk_memory.cpp b/src/dxvk/dxvk_memory.cpp
index 5091f09b..0105bca8 100644
--- a/src/dxvk/dxvk_memory.cpp
+++ b/src/dxvk/dxvk_memory.cpp
@@ -366,8 +366,10 @@ namespace dxvk {
         memory = DxvkMemory(this, nullptr, type, devMem.memHandle, 0, size, devMem.memPointer);
     }
 
-    if (memory)
+    if (memory) {
       type->heap->stats.memoryUsed += memory.m_length;
+      m_device->notifyMemoryUse(type->heapId, memory.m_length);
+    }
 
     return memory;
   }
@@ -431,7 +433,7 @@ namespace dxvk {
     }
 
     type->heap->stats.memoryAllocated += size;
-    m_device->adapter()->notifyHeapMemoryAlloc(type->heapId, size);
+    m_device->notifyMemoryAlloc(type->heapId, size);
     return result;
   }
 
@@ -454,6 +456,8 @@ namespace dxvk {
       devMem.memSize    = memory.m_length;
       this->freeDeviceMemory(memory.m_type, devMem);
     }
+
+    m_device->notifyMemoryUse(memory.m_type->heapId, -memory.m_length);
   }
 
   
@@ -485,7 +489,7 @@ namespace dxvk {
     vk->vkFreeMemory(vk->device(), memory.memHandle, nullptr);
 
     type->heap->stats.memoryAllocated -= memory.memSize;
-    m_device->adapter()->notifyHeapMemoryFree(type->heapId, memory.memSize);
+    m_device->notifyMemoryAlloc(type->heapId, memory.memSize);
   }