diff --git a/api/api.go b/api/api.go
index 55267b34..2a60ba2c 100644
--- a/api/api.go
+++ b/api/api.go
@@ -694,7 +694,7 @@ func (api *api) GetBalances(ctx context.Context) (*BalancesResponse, error) {
 	if api.svc.GetLNClient() == nil {
 		return nil, errors.New("LNClient not started")
 	}
-	balances, err := api.svc.GetLNClient().GetBalances(ctx)
+	balances, err := api.svc.GetLNClient().GetBalances(ctx, false)
 	if err != nil {
 		return nil, err
 	}
diff --git a/lnclient/cashu/cashu.go b/lnclient/cashu/cashu.go
index ce9bae71..3f570f0e 100644
--- a/lnclient/cashu/cashu.go
+++ b/lnclient/cashu/cashu.go
@@ -283,7 +283,7 @@ func (cs *CashuService) UpdateChannel(ctx context.Context, updateChannelRequest
 	return nil
 }
 
-func (cs *CashuService) GetBalances(ctx context.Context) (*lnclient.BalancesResponse, error) {
+func (cs *CashuService) GetBalances(ctx context.Context, includeInactiveChannels bool) (*lnclient.BalancesResponse, error) {
 	cashuBalance := cs.wallet.GetBalance()
 	balance := int64(cashuBalance * 1000)
 
diff --git a/lnclient/ldk/ldk.go b/lnclient/ldk/ldk.go
index 82c0a1c4..d5989448 100644
--- a/lnclient/ldk/ldk.go
+++ b/lnclient/ldk/ldk.go
@@ -1624,7 +1624,7 @@ func (ls *LDKService) saveStaticChannelBackupToDisk(event *events.StaticChannels
 	logger.Logger.WithField("backupPath", backupFilePath).Debug("Saved static channel backup to disk")
 }
 
-func (ls *LDKService) GetBalances(ctx context.Context) (*lnclient.BalancesResponse, error) {
+func (ls *LDKService) GetBalances(ctx context.Context, includeInactiveChannels bool) (*lnclient.BalancesResponse, error) {
 	onchainBalance, err := ls.GetOnchainBalance(ctx)
 	if err != nil {
 		logger.Logger.WithError(err).Error("Failed to retrieve onchain balance")
@@ -1639,7 +1639,7 @@ func (ls *LDKService) GetBalances(ctx context.Context) (*lnclient.BalancesRespon
 	var nextMaxSpendableMPP int64 = 0
 	channels := ls.node.ListChannels()
 	for _, channel := range channels {
-		if channel.IsUsable {
+		if channel.IsUsable || includeInactiveChannels {
 			// spending or receiving amount may be constrained by channel configuration (e.g. ACINQ does this)
 			channelConstrainedSpendable := min(int64(channel.OutboundCapacityMsat), int64(*channel.CounterpartyOutboundHtlcMaximumMsat))
 			channelConstrainedReceivable := min(int64(channel.InboundCapacityMsat), int64(*channel.InboundHtlcMaximumMsat))
diff --git a/lnclient/lnd/lnd.go b/lnclient/lnd/lnd.go
index 4c1e8751..77f604c6 100644
--- a/lnclient/lnd/lnd.go
+++ b/lnclient/lnd/lnd.go
@@ -1083,7 +1083,7 @@ func (svc *LNDService) GetLogOutput(ctx context.Context, maxLen int) ([]byte, er
 	return slicedBytes, nil
 }
 
-func (svc *LNDService) GetBalances(ctx context.Context) (*lnclient.BalancesResponse, error) {
+func (svc *LNDService) GetBalances(ctx context.Context, includeInactiveChannels bool) (*lnclient.BalancesResponse, error) {
 	onchainBalance, err := svc.GetOnchainBalance(ctx)
 	if err != nil {
 		return nil, err
@@ -1104,7 +1104,7 @@ func (svc *LNDService) GetBalances(ctx context.Context) (*lnclient.BalancesRespo
 
 	for _, channel := range resp.Channels {
 		// Unnecessary since ListChannels only returns active channels
-		if channel.Active {
+		if channel.Active || includeInactiveChannels {
 			channelSpendable := max(channel.LocalBalance*1000-int64(channel.LocalConstraints.ChanReserveSat*1000), 0)
 			channelReceivable := max(channel.RemoteBalance*1000-int64(channel.RemoteConstraints.ChanReserveSat*1000), 0)
 
diff --git a/lnclient/models.go b/lnclient/models.go
index 0cb4b8e5..76d47d4a 100644
--- a/lnclient/models.go
+++ b/lnclient/models.go
@@ -66,7 +66,7 @@ type LNClient interface {
 	GetNewOnchainAddress(ctx context.Context) (string, error)
 	ResetRouter(key string) error
 	GetOnchainBalance(ctx context.Context) (*OnchainBalanceResponse, error)
-	GetBalances(ctx context.Context) (*BalancesResponse, error)
+	GetBalances(ctx context.Context, includeInactiveChannels bool) (*BalancesResponse, error)
 	RedeemOnchainFunds(ctx context.Context, toAddress string, amount uint64, sendAll bool) (txId string, err error)
 	SendPaymentProbes(ctx context.Context, invoice string) error
 	SendSpontaneousPaymentProbes(ctx context.Context, amountMsat uint64, nodeId string) error
diff --git a/lnclient/phoenixd/phoenixd.go b/lnclient/phoenixd/phoenixd.go
index 77501952..b8f8758b 100644
--- a/lnclient/phoenixd/phoenixd.go
+++ b/lnclient/phoenixd/phoenixd.go
@@ -92,7 +92,7 @@ func NewPhoenixService(address string, authorization string) (result lnclient.LN
 	return phoenixService, nil
 }
 
-func (svc *PhoenixService) GetBalances(ctx context.Context) (*lnclient.BalancesResponse, error) {
+func (svc *PhoenixService) GetBalances(ctx context.Context, includeInactiveChannels bool) (*lnclient.BalancesResponse, error) {
 	req, err := http.NewRequest(http.MethodGet, svc.Address+"/getbalance", nil)
 	if err != nil {
 		return nil, err
diff --git a/nip47/controllers/get_balance_controller.go b/nip47/controllers/get_balance_controller.go
index 18d342fd..a75cb288 100644
--- a/nip47/controllers/get_balance_controller.go
+++ b/nip47/controllers/get_balance_controller.go
@@ -33,7 +33,7 @@ func (controller *nip47Controller) HandleGetBalanceEvent(ctx context.Context, ni
 	if app.Isolated {
 		balance = queries.GetIsolatedBalance(controller.db, app.ID)
 	} else {
-		balances, err := controller.lnClient.GetBalances(ctx)
+		balances, err := controller.lnClient.GetBalances(ctx, true)
 		balance = balances.Lightning.TotalSpendable
 		if err != nil {
 			logger.Logger.WithFields(logrus.Fields{
diff --git a/tests/mock_ln_client.go b/tests/mock_ln_client.go
index 2d19e6f5..10029f92 100644
--- a/tests/mock_ln_client.go
+++ b/tests/mock_ln_client.go
@@ -137,7 +137,7 @@ func (mln *MockLn) CloseChannel(ctx context.Context, closeChannelRequest *lnclie
 func (mln *MockLn) GetNewOnchainAddress(ctx context.Context) (string, error) {
 	return "", nil
 }
-func (mln *MockLn) GetBalances(ctx context.Context) (*lnclient.BalancesResponse, error) {
+func (mln *MockLn) GetBalances(ctx context.Context, includeInactiveChannels bool) (*lnclient.BalancesResponse, error) {
 	return &MockLNClientBalances, nil
 }
 func (mln *MockLn) GetOnchainBalance(ctx context.Context) (*lnclient.OnchainBalanceResponse, error) {
diff --git a/tests/mocks/Config.go b/tests/mocks/Config.go
index fe75854a..1a28bf0d 100644
--- a/tests/mocks/Config.go
+++ b/tests/mocks/Config.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.52.1. DO NOT EDIT.
+// Code generated by mockery v2.53.2. DO NOT EDIT.
 
 package mocks
 
diff --git a/tests/mocks/LNClient.go b/tests/mocks/LNClient.go
index 67e2a309..23174b25 100644
--- a/tests/mocks/LNClient.go
+++ b/tests/mocks/LNClient.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.52.1. DO NOT EDIT.
+// Code generated by mockery v2.53.2. DO NOT EDIT.
 
 package mocks
 
@@ -234,9 +234,9 @@ func (_c *MockLNClient_ExecuteCustomNodeCommand_Call) RunAndReturn(run func(cont
 	return _c
 }
 
-// GetBalances provides a mock function with given fields: ctx
-func (_m *MockLNClient) GetBalances(ctx context.Context) (*lnclient.BalancesResponse, error) {
-	ret := _m.Called(ctx)
+// GetBalances provides a mock function with given fields: ctx, includeInactiveChannels
+func (_m *MockLNClient) GetBalances(ctx context.Context, includeInactiveChannels bool) (*lnclient.BalancesResponse, error) {
+	ret := _m.Called(ctx, includeInactiveChannels)
 
 	if len(ret) == 0 {
 		panic("no return value specified for GetBalances")
@@ -244,19 +244,19 @@ func (_m *MockLNClient) GetBalances(ctx context.Context) (*lnclient.BalancesResp
 
 	var r0 *lnclient.BalancesResponse
 	var r1 error
-	if rf, ok := ret.Get(0).(func(context.Context) (*lnclient.BalancesResponse, error)); ok {
-		return rf(ctx)
+	if rf, ok := ret.Get(0).(func(context.Context, bool) (*lnclient.BalancesResponse, error)); ok {
+		return rf(ctx, includeInactiveChannels)
 	}
-	if rf, ok := ret.Get(0).(func(context.Context) *lnclient.BalancesResponse); ok {
-		r0 = rf(ctx)
+	if rf, ok := ret.Get(0).(func(context.Context, bool) *lnclient.BalancesResponse); ok {
+		r0 = rf(ctx, includeInactiveChannels)
 	} else {
 		if ret.Get(0) != nil {
 			r0 = ret.Get(0).(*lnclient.BalancesResponse)
 		}
 	}
 
-	if rf, ok := ret.Get(1).(func(context.Context) error); ok {
-		r1 = rf(ctx)
+	if rf, ok := ret.Get(1).(func(context.Context, bool) error); ok {
+		r1 = rf(ctx, includeInactiveChannels)
 	} else {
 		r1 = ret.Error(1)
 	}
@@ -271,13 +271,14 @@ type MockLNClient_GetBalances_Call struct {
 
 // GetBalances is a helper method to define mock.On call
 //   - ctx context.Context
-func (_e *MockLNClient_Expecter) GetBalances(ctx interface{}) *MockLNClient_GetBalances_Call {
-	return &MockLNClient_GetBalances_Call{Call: _e.mock.On("GetBalances", ctx)}
+//   - includeInactiveChannels bool
+func (_e *MockLNClient_Expecter) GetBalances(ctx interface{}, includeInactiveChannels interface{}) *MockLNClient_GetBalances_Call {
+	return &MockLNClient_GetBalances_Call{Call: _e.mock.On("GetBalances", ctx, includeInactiveChannels)}
 }
 
-func (_c *MockLNClient_GetBalances_Call) Run(run func(ctx context.Context)) *MockLNClient_GetBalances_Call {
+func (_c *MockLNClient_GetBalances_Call) Run(run func(ctx context.Context, includeInactiveChannels bool)) *MockLNClient_GetBalances_Call {
 	_c.Call.Run(func(args mock.Arguments) {
-		run(args[0].(context.Context))
+		run(args[0].(context.Context), args[1].(bool))
 	})
 	return _c
 }
@@ -287,7 +288,7 @@ func (_c *MockLNClient_GetBalances_Call) Return(_a0 *lnclient.BalancesResponse,
 	return _c
 }
 
-func (_c *MockLNClient_GetBalances_Call) RunAndReturn(run func(context.Context) (*lnclient.BalancesResponse, error)) *MockLNClient_GetBalances_Call {
+func (_c *MockLNClient_GetBalances_Call) RunAndReturn(run func(context.Context, bool) (*lnclient.BalancesResponse, error)) *MockLNClient_GetBalances_Call {
 	_c.Call.Return(run)
 	return _c
 }
diff --git a/tests/mocks/Service.go b/tests/mocks/Service.go
index 466f5213..9218e6ba 100644
--- a/tests/mocks/Service.go
+++ b/tests/mocks/Service.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.52.1. DO NOT EDIT.
+// Code generated by mockery v2.53.2. DO NOT EDIT.
 
 package mocks