diff --git a/Source/effects.cpp b/Source/effects.cpp
index 686f83440..f8a238db5 100644
--- a/Source/effects.cpp
+++ b/Source/effects.cpp
@@ -1091,13 +1091,13 @@ static void stream_play(TSFX *pSFX, int lVolume, int lPan)
 	assert(pSFX);
 	assert(pSFX->bFlags & sfx_STREAM);
 	stream_stop();
-	lVolume += sound_get_or_set_sound_volume(1);
+	
 	if (lVolume >= VOLUME_MIN) {
 		if (lVolume > VOLUME_MAX)
 			lVolume = VOLUME_MAX;
 		if (pSFX->pSnd == nullptr)
 			pSFX->pSnd = sound_file_load(pSFX->pszName, AllowStreaming);
-		pSFX->pSnd->DSB.Play(lVolume, lPan, 0);
+		pSFX->pSnd->DSB.Play(lVolume, sound_get_or_set_sound_volume(1), lPan, 0);
 		sgpStreamSFX = pSFX;
 	}
 }
@@ -1144,23 +1144,21 @@ bool calc_snd_position(int x, int y, int *plVolume, int *plPan)
 {
 	int pan, volume;
 
-	x -= plr[myplr].position.tile.x;
-	y -= plr[myplr].position.tile.y;
+	const auto &playerPosition = plr[myplr].position.tile;
 
-	pan = (x - y) * 256;
-	*plPan = pan;
+	const int dx = x - playerPosition.x;
+	const int dy = y - playerPosition.y;
 
-	if (abs(pan) > 6400)
-		return false;
+	pan = (dx - dy) * 256;
+	*plPan = clamp(pan, PAN_MIN, PAN_MAX);
 
-	volume = abs(x) > abs(y) ? abs(x) : abs(y);
-	volume *= 64;
-	*plVolume = volume;
+	volume = playerPosition.ApproxDistance({ x, y });
+	volume *= -64;
 
-	if (volume >= 6400)
+	if (volume <= ATTENUATION_MIN)
 		return false;
 
-	*plVolume = -volume;
+	*plVolume = volume;
 
 	return true;
 }
diff --git a/Source/engine.h b/Source/engine.h
index 9e8441282..8c66a08b0 100644
--- a/Source/engine.h
+++ b/Source/engine.h
@@ -17,6 +17,7 @@
 #include <cstdint>
 #include <cstdlib>
 #include <memory>
+#include <tuple>
 #include <utility>
 
 #include <SDL.h>
@@ -91,6 +92,26 @@ struct Point {
 		a -= b;
 		return a;
 	}
+
+	/**
+	 * @brief Fast approximate distance between two points, using only integer arithmetic, with less than ~5% error
+	 * @param other Pointer to which we want the distance
+	 * @return Magnitude of vector this -> other
+	 */
+
+	int ApproxDistance(Point other) const
+	{
+		int min;
+		int max;
+
+		std::tie(min, max) = std::minmax(std::abs(other.x - x), std::abs(other.y - y));
+
+		int approx = max * 1007 + min * 441;
+		if (max < (min * 16))
+			approx -= max * 40;
+
+		return (approx + 512) / 1024;
+	}
 };
 
 struct ActorPosition {
diff --git a/Source/gamemenu.cpp b/Source/gamemenu.cpp
index 42113a775..bf115e425 100644
--- a/Source/gamemenu.cpp
+++ b/Source/gamemenu.cpp
@@ -186,7 +186,7 @@ void gamemenu_sound_music_toggle(const char *const *names, TMenuItem *menu_item,
 	if (gbSndInited) {
 		menu_item->dwFlags |= GMENU_ENABLED | GMENU_SLIDER;
 		menu_item->pszStr = names[0];
-		gmenu_slider_steps(menu_item, 17);
+		gmenu_slider_steps(menu_item, VOLUME_STEPS);
 		gmenu_slider_set(menu_item, VOLUME_MIN, VOLUME_MAX, volume);
 		return;
 	}
diff --git a/Source/sound.cpp b/Source/sound.cpp
index 9914da589..001cbd00b 100644
--- a/Source/sound.cpp
+++ b/Source/sound.cpp
@@ -20,6 +20,7 @@
 #include "storm/storm_sdl_rw.h"
 #include "storm/storm.h"
 #include "utils/log.hpp"
+#include "utils/math.h"
 #include "utils/sdl_mutex.h"
 #include "utils/stdcompat/optional.hpp"
 #include "utils/stdcompat/shared_ptr_array.hpp"
@@ -121,12 +122,7 @@ const char *const sgszMusicTracks[NUM_MUSIC] = {
 
 static int CapVolume(int volume)
 {
-	if (volume < VOLUME_MIN) {
-		volume = VOLUME_MIN;
-	} else if (volume > VOLUME_MAX) {
-		volume = VOLUME_MAX;
-	}
-	return volume - volume % 100;
+	return clamp(volume, VOLUME_MIN, VOLUME_MAX);
 }
 
 void ClearDuplicateSounds() {
@@ -154,8 +150,7 @@ void snd_play_snd(TSnd *pSnd, int lVolume, int lPan)
 			return;
 	}
 
-	lVolume = CapVolume(lVolume + sgOptions.Audio.nSoundVolume);
-	sound->Play(lVolume, lPan);
+	sound->Play(lVolume, sgOptions.Audio.nSoundVolume, lPan);
 	pSnd->start_tc = tc;
 }
 
@@ -259,7 +254,7 @@ void music_start(uint8_t nTrack)
 				return;
 			}
 
-			music->setVolume(1.F - static_cast<float>(sgOptions.Audio.nMusicVolume) / VOLUME_MIN);
+			music->setVolume(VolumeLogToLinear(sgOptions.Audio.nMusicVolume, VOLUME_MIN, VOLUME_MAX));
 			if (!music->play(/*iterations=*/0)) {
 				LogError(LogCategory::Audio, "Aulib::Stream::play (from music_start): {}", SDL_GetError());
 				CleanupMusic();
@@ -288,7 +283,7 @@ int sound_get_or_set_music_volume(int volume)
 	sgOptions.Audio.nMusicVolume = volume;
 
 	if (music)
-		music->setVolume(1.F - static_cast<float>(sgOptions.Audio.nMusicVolume) / VOLUME_MIN);
+		music->setVolume(VolumeLogToLinear(sgOptions.Audio.nMusicVolume, VOLUME_MIN, VOLUME_MAX));
 
 	return sgOptions.Audio.nMusicVolume;
 }
diff --git a/Source/sound.h b/Source/sound.h
index 8c5140789..2f66e3251 100644
--- a/Source/sound.h
+++ b/Source/sound.h
@@ -19,6 +19,13 @@ namespace devilution {
 
 #define VOLUME_MIN -1600
 #define VOLUME_MAX 0
+#define VOLUME_STEPS 64
+
+#define ATTENUATION_MIN -6400
+#define ATTENUATION_MAX 0
+
+#define PAN_MIN -6400
+#define PAN_MAX 6400
 
 enum _music_id : uint8_t {
 	TMUSIC_TOWN,
diff --git a/Source/utils/math.h b/Source/utils/math.h
index 6cb2b97f3..b4feac8e3 100644
--- a/Source/utils/math.h
+++ b/Source/utils/math.h
@@ -14,11 +14,60 @@ namespace math {
  * @param t Value to compute sign of
  * @return -1 if t < 0, 1 if t > 0, 0 if t == 0
 */
-template<typename T>
+template <typename T>
 int Sign(T t)
 {
 	return (t > T(0)) - (t < T(0));
 }
 
+/**
+ * @brief Linearly interpolate from a towards b using mixing value t
+ * @tparam V Any arithmetic type, used for interpolants and return value
+ * @tparam T Any arithmetic type, used for interpolator
+ * @param a Low interpolation value (returned when t == 0)
+ * @param b High interpolation value (returned when t == 1)
+ * @param t Interpolator, commonly in range [0..1], values outside this range will extrapolate
+ * @return a + (b - a) * t
+*/
+template <typename V, typename T>
+V Lerp(V a, V b, T t)
+{
+	return a + (b - a) * t;
+}
+
+/**
+ * @brief Inverse lerp, given two key values a and b, and a free value v, determine mixing factor t so that v = Lerp(a, b, t)
+ * @tparam T Any arithmetic type
+ * @param a Low key value (function returns 0 if v == a)
+ * @param b High key value (function returns 1 if v == b)
+ * @param v Mixing factor, commonly in range [a..b] to get a return [0..1]
+ * @return Value t so that v = Lerp(a, b, t); or 0 if b == a
+*/
+template <typename T>
+T InvLerp(T a, T b, T v)
+{
+	if (b == a)
+		return T(0);
+
+	return (v - a) / (b - a);
+}
+
+/**
+ * @brief Remaps value v from range [inMin, inMax] to [outMin, outMax]
+ * @tparam T Any arithmetic type
+ * @param inMin First bound of input range
+ * @param inMax Second bound of input range
+ * @param outMin First bound of output range
+ * @param outMax Second bound of output range
+ * @param v Value to remap
+ * @return Transformed value so that InvLerp(inMin, inMax, v) == InvLerp(outMin, outMax, return)
+*/
+template <typename T>
+T Remap(T inMin, T inMax, T outMin, T outMax, T v)
+{
+	auto t = InvLerp(inMin, inMax, v);
+	return Lerp(outMin, outMax, t);
+}
+
 } // namespace math
 } // namespace devilution
diff --git a/Source/utils/soundsample.cpp b/Source/utils/soundsample.cpp
index e6e960552..f993927f3 100644
--- a/Source/utils/soundsample.cpp
+++ b/Source/utils/soundsample.cpp
@@ -16,10 +16,57 @@
 #include "storm/storm_sdl_rw.h"
 #include "storm/storm.h"
 #include "utils/log.hpp"
+#include "utils/math.h"
 #include "utils/stubs.h"
 
 namespace devilution {
 
+namespace {
+
+constexpr float LogBase = 10.0f;
+
+/**
+ * Scaling factor for attenuating volume.
+ * Picked so that a volume change of -10 dB results in half perceived loudness.
+ * VolumeScale = -1000 / log(0.5)
+ */
+constexpr float VolumeScale = 3321.9281f;
+
+/**
+ * Min and max volume range, in millibel.
+ * -100 dB (muted) to 0 dB (max. loudness).
+ */
+constexpr float MillibelMin = -10000.0f;
+constexpr float MillibelMax = 0.0f;
+
+/**
+ * Stereo separation factor for left/right speaker panning. Lower values increase separation, moving
+ * sounds further left/right, while higher values will pull sounds more towards the middle, reducing separation.
+ * Current value is tuned to have ~2:1 mix for sounds that happen on the edge of a 640x480 screen.
+ */
+constexpr float StereoSeparation = 6000.0f;
+
+float PanLogToLinear(int logPan)
+{
+	if (logPan == 0)
+		return 0;
+
+	auto factor = std::pow(LogBase, static_cast<float>(-std::abs(logPan)) / StereoSeparation);
+	
+	return copysign(1.0f - factor, static_cast<float>(logPan));
+}
+
+} // namespace
+
+float VolumeLogToLinear(int logVolume, int logMin, int logMax)
+{
+	const float logScaled = math::Remap<float>(logMin, logMax, MillibelMin, MillibelMax, logVolume);
+	const auto linVolume = std::pow(LogBase, static_cast<float>(logScaled) / VolumeScale);
+	return linVolume;
+}
+
+///// SoundSample /////
+
 void SoundSample::Release()
 {
 	stream_ = nullptr;
@@ -38,18 +85,17 @@ bool SoundSample::IsPlaying()
 /**
  * @brief Start playing the sound
  */
-void SoundSample::Play(int lVolume, int lPan, int channel)
+void SoundSample::Play(int logSoundVolume, int logUserVolume, int logPan, int channel)
 {
 	if (!stream_)
 		return;
 
-	constexpr float Base = 10.F;
-	constexpr float Scale = 2000.F;
-	stream_->setVolume(std::pow(Base, static_cast<float>(lVolume) / Scale));
-	stream_->setStereoPosition(
-	    lPan == 0 ? 0
-	              : copysign(1.F - std::pow(Base, static_cast<float>(-std::fabs(lPan) / Scale)),
-	                  static_cast<float>(lPan)));
+	const int combinedLogVolume = logSoundVolume + logUserVolume * (ATTENUATION_MIN / VOLUME_MIN);
+	const float linearVolume = VolumeLogToLinear(combinedLogVolume, ATTENUATION_MIN, 0);
+	stream_->setVolume(linearVolume);
+
+	const float linearPan = PanLogToLinear(logPan);
+	stream_->setStereoPosition(linearPan);
 
 	if (!stream_->play()) {
 		LogError(LogCategory::Audio, "Aulib::Stream::play (from SoundSample::Play): {}", SDL_GetError());
diff --git a/Source/utils/soundsample.h b/Source/utils/soundsample.h
index 583e2d667..519b1ce7c 100644
--- a/Source/utils/soundsample.h
+++ b/Source/utils/soundsample.h
@@ -11,6 +11,15 @@
 
 namespace devilution {
 
+/**
+ * @brief Converts log volume passed in into linear volume.
+ * @param logVolume Logarithmic volume in the range [logMin..logMax]
+ * @param logMin Volume range minimum (usually ATTENUATION_MIN for game sounds and VOLUME_MIN for volume sliders)
+ * @param logMax Volume range maximum (usually 0)
+ * @return Linear volume in the range [0..1]
+*/
+float VolumeLogToLinear(int logVolume, int logMin, int logMax);
+
 class SoundSample final {
 public:
 	SoundSample() = default;
@@ -19,7 +28,7 @@ public:
 
 	void Release();
 	bool IsPlaying();
-	void Play(int lVolume, int lPan, int channel = -1);
+	void Play(int logSoundVolume, int logUserVolume, int logPan, int channel = -1);
 	void Stop();
 	int SetChunkStream(std::string filePath);
 
diff --git a/test/effects_test.cpp b/test/effects_test.cpp
index 82a913260..25ef2cf3e 100644
--- a/test/effects_test.cpp
+++ b/test/effects_test.cpp
@@ -28,29 +28,29 @@ TEST(Effects, calc_snd_position_near)
 TEST(Effects, calc_snd_position_out_of_range)
 {
 	plr[myplr].position.tile = { 12, 12 };
-	int plVolume = 0;
+	int plVolume = 1234;
 	int plPan = 0;
 	EXPECT_EQ(calc_snd_position(112, 112, &plVolume, &plPan), false);
-	ASSERT_GE(plVolume, 6400);
+	EXPECT_EQ(plVolume, 1234);
 	EXPECT_EQ(plPan, 0);
 }
 
-TEST(Effects, calc_snd_position_extream_right)
+TEST(Effects, calc_snd_position_extreme_right)
 {
 	plr[myplr].position.tile = { 50, 50 };
 	int plVolume = 0;
 	int plPan = 0;
-	EXPECT_EQ(calc_snd_position(76, 50, &plVolume, &plPan), false);
-	EXPECT_EQ(plVolume, 0);
-	EXPECT_GT(plPan, 6400);
+	EXPECT_EQ(calc_snd_position(75, 25, &plVolume, &plPan), true);
+	EXPECT_EQ(plVolume, -2176);
+	EXPECT_EQ(plPan, 6400);
 }
 
-TEST(Effects, calc_snd_position_extream_left)
+TEST(Effects, calc_snd_position_extreme_left)
 {
 	plr[myplr].position.tile = { 50, 50 };
 	int plVolume = 0;
 	int plPan = 0;
-	EXPECT_EQ(calc_snd_position(24, 50, &plVolume, &plPan), false);
-	EXPECT_EQ(plVolume, 0);
-	EXPECT_LT(plPan, -6400);
+	EXPECT_EQ(calc_snd_position(25, 75, &plVolume, &plPan), true);
+	EXPECT_EQ(plVolume, -2176);
+	EXPECT_EQ(plPan, -6400);
 }