diff --git a/formats/squashed.py b/formats/squashed.py
index c04b4aa7e..13b7dabcb 100644
--- a/formats/squashed.py
+++ b/formats/squashed.py
@@ -19,9 +19,11 @@ class SquashedDockerImage(TarImageFormatter):
       command.
   """
 
-  # TODO(jschorr): Change this multiplier to reflect the 99%-tile of the actual difference between
-  # the uncompressed image size and the Size reported by Docker.
-  SIZE_MULTIPLIER = 2
+  # Multiplier against the image size reported by Docker to account for the TAR metadata.
+  # Note: This multiplier was not formally calculated in anyway and should be adjusted overtime
+  # if/when we encounter issues with it. Unfortunately, we cannot make it too large or the Docker
+  # daemon dies when trying to load the entire TAR into memory.
+  SIZE_MULTIPLIER = 1.2
 
   def stream_generator(self, namespace, repository, tag, synthetic_image_id,
                        layer_json, get_image_iterator, get_layer_iterator, get_image_json):