diff --git a/operator/config/manager/manager.yaml b/operator/config/manager/manager.yaml
index 5313cc2bd..d218e6335 100644
--- a/operator/config/manager/manager.yaml
+++ b/operator/config/manager/manager.yaml
@@ -66,6 +66,8 @@ spec:
           value: ${CDI_EXPORT_TOKEN_TTL}
         - name: FILESYSTEM_OVERHEAD
           value: ${FILESYSTEM_OVERHEAD}
+        - name: BLOCK_OVERHEAD
+          value: ${BLOCK_OVERHEAD}
         - name: POPULATOR_CONTROLLER_IMAGE
           value: ${POPULATOR_CONTROLLER_IMAGE}
         - name: OVIRT_POPULATOR_IMAGE
diff --git a/operator/roles/forkliftcontroller/defaults/main.yml b/operator/roles/forkliftcontroller/defaults/main.yml
index 3cb13c740..865cb821b 100644
--- a/operator/roles/forkliftcontroller/defaults/main.yml
+++ b/operator/roles/forkliftcontroller/defaults/main.yml
@@ -35,6 +35,7 @@ controller_vsphere_incremental_backup: true
 controller_ovirt_warm_migration: true
 controller_max_vm_inflight: 20
 controller_filesystem_overhead: 10
+controller_block_overhead: 0
 profiler_volume_path: "/var/cache/profiler"
 
 inventory_volume_path: "/var/cache/inventory"
diff --git a/operator/roles/forkliftcontroller/templates/controller/deployment-controller.yml.j2 b/operator/roles/forkliftcontroller/templates/controller/deployment-controller.yml.j2
index a1bc486df..64d5709b9 100644
--- a/operator/roles/forkliftcontroller/templates/controller/deployment-controller.yml.j2
+++ b/operator/roles/forkliftcontroller/templates/controller/deployment-controller.yml.j2
@@ -80,6 +80,10 @@ spec:
         - name: FILESYSTEM_OVERHEAD
           value: "{{ controller_filesystem_overhead }}"
 {% endif %}
+{% if controller_block_overhead is number %}
+        - name: BLOCK_OVERHEAD
+          value: "{{ controller_block_overhead }}"
+{% endif %}
 {% if controller_vsphere_incremental_backup|bool %}
         - name: FEATURE_VSPHERE_INCREMENTAL_BACKUP
           value: "true"
diff --git a/pkg/controller/plan/adapter/openstack/builder.go b/pkg/controller/plan/adapter/openstack/builder.go
index 7afe9d182..71de8b534 100644
--- a/pkg/controller/plan/adapter/openstack/builder.go
+++ b/pkg/controller/plan/adapter/openstack/builder.go
@@ -1100,10 +1100,7 @@ func (r *Builder) persistentVolumeClaimWithSourceRef(image model.Image, storageC
 		err = liberr.Wrap(err)
 		return
 	}
-
-	if *volumeMode == core.PersistentVolumeFilesystem {
-		virtualSize = utils.CalculateSpaceWithOverhead(virtualSize)
-	}
+	virtualSize = utils.CalculateSpaceWithOverhead(virtualSize, volumeMode)
 
 	// The image might be a VM Snapshot Image and has no volume associated to it
 	if originalVolumeDiskId, ok := image.Properties["forklift_original_volume_id"]; ok {
diff --git a/pkg/controller/plan/adapter/ovirt/builder.go b/pkg/controller/plan/adapter/ovirt/builder.go
index 0d9ecf211..497afde9e 100644
--- a/pkg/controller/plan/adapter/ovirt/builder.go
+++ b/pkg/controller/plan/adapter/ovirt/builder.go
@@ -780,11 +780,7 @@ func (r *Builder) getDefaultVolumeAndAccessMode(storageClassName string) ([]core
 // Build a PersistentVolumeClaim with DataSourceRef for VolumePopulator
 func (r *Builder) persistentVolumeClaimWithSourceRef(diskAttachment model.XDiskAttachment, storageClassName string, populatorName string,
 	annotations map[string]string) (pvc *core.PersistentVolumeClaim, err error) {
-
-	// We add 10% overhead because of the fsOverhead in CDI, around 5% to ext4 and 5% for root partition.
-	// This value is configurable using `FILESYSTEM_OVERHEAD`
 	diskSize := diskAttachment.Disk.ProvisionedSize
-
 	var accessModes []core.PersistentVolumeAccessMode
 	var volumeMode *core.PersistentVolumeMode
 	accessModes, volumeMode, err = r.getDefaultVolumeAndAccessMode(storageClassName)
@@ -792,12 +788,11 @@ func (r *Builder) persistentVolumeClaimWithSourceRef(diskAttachment model.XDiskA
 		err = liberr.Wrap(err)
 		return
 	}
-
-	// Accounting for fsOverhead is only required for `volumeMode: Filesystem`, as we may not have enough space
-	// after creating a filesystem on an underlying block device
-	if *volumeMode == core.PersistentVolumeFilesystem {
-		diskSize = utils.CalculateSpaceWithOverhead(diskSize)
-	}
+	// We add 10% overhead because of the fsOverhead in CDI, around 5% to ext4 and 5% for root partition.
+	// This value is configurable using `FILESYSTEM_OVERHEAD`
+	// Encrypted Ceph RBD makes the pod see less space, this possible overhead needs to be taken into account.
+	// For Block the value is configurable using `BLOCK_OVERHEAD`
+	diskSize = utils.CalculateSpaceWithOverhead(diskSize, volumeMode)
 
 	annotations[AnnImportDiskId] = diskAttachment.ID
 
diff --git a/pkg/controller/plan/util/utils.go b/pkg/controller/plan/util/utils.go
index 782fe210f..1151dd30d 100644
--- a/pkg/controller/plan/util/utils.go
+++ b/pkg/controller/plan/util/utils.go
@@ -4,6 +4,7 @@ import (
 	"math"
 
 	"github.com/konveyor/forklift-controller/pkg/settings"
+	core "k8s.io/api/core/v1"
 )
 
 // Disk alignment size used to align FS overhead,
@@ -20,8 +21,13 @@ func roundUp(requestedSpace, multiple int64) int64 {
 	return int64(partitions) * multiple
 }
 
-func CalculateSpaceWithOverhead(requestedSpace int64) int64 {
+func CalculateSpaceWithOverhead(requestedSpace int64, volumeMode *core.PersistentVolumeMode) int64 {
 	alignedSize := roundUp(requestedSpace, DefaultAlignBlockSize)
-	spaceWithOverhead := int64(math.Ceil(float64(alignedSize) / (1 - float64(settings.Settings.FileSystemOverhead)/100)))
+	var spaceWithOverhead int64
+	if *volumeMode == core.PersistentVolumeFilesystem {
+		spaceWithOverhead = int64(math.Ceil(float64(alignedSize) / (1 - float64(settings.Settings.FileSystemOverhead)/100)))
+	} else {
+		spaceWithOverhead = alignedSize + int64(settings.Settings.BlockOverhead)
+	}
 	return spaceWithOverhead
 }
diff --git a/pkg/settings/migration.go b/pkg/settings/migration.go
index ff9cfdc5c..035122727 100644
--- a/pkg/settings/migration.go
+++ b/pkg/settings/migration.go
@@ -19,6 +19,7 @@ const (
 	SnapshotStatusCheckRate = "SNAPSHOT_STATUS_CHECK_RATE"
 	CDIExportTokenTTL       = "CDI_EXPORT_TOKEN_TTL"
 	FileSystemOverhead      = "FILESYSTEM_OVERHEAD"
+	BlockOverhead           = "BLOCK_OVERHEAD"
 )
 
 // Default virt-v2v image.
@@ -49,6 +50,8 @@ type Migration struct {
 	CDIExportTokenTTL int
 	// FileSystem overhead in percantage
 	FileSystemOverhead int
+	// Block fixed overhead size
+	BlockOverhead int
 }
 
 // Load settings.
@@ -98,6 +101,9 @@ func (r *Migration) Load() (err error) {
 	if err != nil {
 		return liberr.Wrap(err)
 	}
+	if r.BlockOverhead, err = getNonNegativeEnvLimit(BlockOverhead, 0); err != nil {
+		return liberr.Wrap(err)
+	}
 
 	return
 }