diff --git a/core/src/main/java/bisq/core/api/CoreWalletsService.java b/core/src/main/java/bisq/core/api/CoreWalletsService.java
index a4e88578fc9..149a18d655d 100644
--- a/core/src/main/java/bisq/core/api/CoreWalletsService.java
+++ b/core/src/main/java/bisq/core/api/CoreWalletsService.java
@@ -289,6 +289,7 @@ void sendBtc(String address,
             //  See WithdrawalView # onWithdraw (and refactor).
             Transaction feeEstimationTransaction =
                     btcWalletService.getFeeEstimationTransactionForMultipleAddresses(fromAddresses,
+                            address,
                             receiverAmount,
                             txFeePerVbyte);
             if (feeEstimationTransaction == null)
diff --git a/core/src/main/java/bisq/core/btc/wallet/BtcWalletService.java b/core/src/main/java/bisq/core/btc/wallet/BtcWalletService.java
index 64151d47162..f1c5e7ad01e 100644
--- a/core/src/main/java/bisq/core/btc/wallet/BtcWalletService.java
+++ b/core/src/main/java/bisq/core/btc/wallet/BtcWalletService.java
@@ -1056,13 +1056,7 @@ public Transaction getFeeEstimationTransaction(String fromAddress,
     }
 
     public Transaction getFeeEstimationTransactionForMultipleAddresses(Set<String> fromAddresses,
-                                                                       Coin amount)
-            throws AddressFormatException, AddressEntryException, InsufficientFundsException {
-        Coin txFeeForWithdrawalPerVbyte = getTxFeeForWithdrawalPerVbyte();
-        return getFeeEstimationTransactionForMultipleAddresses(fromAddresses, amount, txFeeForWithdrawalPerVbyte);
-    }
-
-    public Transaction getFeeEstimationTransactionForMultipleAddresses(Set<String> fromAddresses,
+                                                                       String toAddress,
                                                                        Coin amount,
                                                                        Coin txFeeForWithdrawalPerVbyte)
             throws AddressFormatException, AddressEntryException, InsufficientFundsException {
@@ -1090,11 +1084,7 @@ public Transaction getFeeEstimationTransactionForMultipleAddresses(Set<String> f
             do {
                 counter++;
                 fee = txFeeForWithdrawalPerVbyte.multiply(txVsize);
-                // We use a dummy address for the output
-                // We don't know here whether the output is segwit or not but we don't care too much because the size of
-                // a segwit ouput is just 3 byte smaller than the size of a legacy ouput.
-                final String dummyReceiver = SegwitAddress.fromKey(params, new ECKey()).toString();
-                SendRequest sendRequest = getSendRequestForMultipleAddresses(fromAddresses, dummyReceiver, amount, fee, null, aesKey);
+                SendRequest sendRequest = getSendRequestForMultipleAddresses(fromAddresses, toAddress, amount, fee, null, aesKey);
                 wallet.completeTx(sendRequest);
                 tx = sendRequest.tx;
                 txVsize = tx.getVsize();
@@ -1113,14 +1103,14 @@ public Transaction getFeeEstimationTransactionForMultipleAddresses(Set<String> f
     }
 
     private boolean feeEstimationNotSatisfied(int counter, Transaction tx) {
-        return feeEstimationNotSatisfied(counter, tx, getTxFeeForWithdrawalPerVbyte());
+        return feeEstimationNotSatisfied(counter, tx.getFee().value, tx.getVsize(), getTxFeeForWithdrawalPerVbyte());
     }
 
-    private boolean feeEstimationNotSatisfied(int counter, Transaction tx, Coin txFeeForWithdrawalPerVbyte) {
-        long targetFee = txFeeForWithdrawalPerVbyte.multiply(tx.getVsize()).value;
+    private boolean feeEstimationNotSatisfied(int counter, long txFee, long txVsize, Coin txFeeForWithdrawalPerVbyte) {
+        long targetFee = txFeeForWithdrawalPerVbyte.multiply(txVsize).value;
+        long higherThanTargetFee = txFee - targetFee;
         return counter < 10 &&
-                (tx.getFee().value < targetFee ||
-                        tx.getFee().value - targetFee > 1000);
+                (txFee < targetFee || higherThanTargetFee > 1000);
     }
 
     public int getEstimatedFeeTxVsize(List<Coin> outputValues, Coin txFee)
diff --git a/desktop/src/main/java/bisq/desktop/main/funds/withdrawal/WithdrawalView.java b/desktop/src/main/java/bisq/desktop/main/funds/withdrawal/WithdrawalView.java
index 368b74edaa4..1934b1cc5a2 100644
--- a/desktop/src/main/java/bisq/desktop/main/funds/withdrawal/WithdrawalView.java
+++ b/desktop/src/main/java/bisq/desktop/main/funds/withdrawal/WithdrawalView.java
@@ -406,9 +406,9 @@ private void onWithdraw() {
                 final Coin sendersAmount;
 
                 // We do not know sendersAmount if senderPaysFee is true. We repeat fee calculation after first attempt if senderPaysFee is true.
-                Transaction feeEstimationTransaction = btcWalletService.getFeeEstimationTransactionForMultipleAddresses(fromAddresses, amountAsCoin, feeRate);
+                Transaction feeEstimationTransaction = btcWalletService.getFeeEstimationTransactionForMultipleAddresses(fromAddresses, withdrawToAddress, amountAsCoin, feeRate);
                 if (feeExcluded && feeEstimationTransaction != null) {
-                    feeEstimationTransaction = btcWalletService.getFeeEstimationTransactionForMultipleAddresses(fromAddresses, amountAsCoin.add(feeEstimationTransaction.getFee()), feeRate);
+                    feeEstimationTransaction = btcWalletService.getFeeEstimationTransactionForMultipleAddresses(fromAddresses, withdrawToAddress, amountAsCoin.add(feeEstimationTransaction.getFee()), feeRate);
                 }
                 checkNotNull(feeEstimationTransaction, "feeEstimationTransaction must not be null");