diff --git a/tests/test_kv_cache.py b/tests/test_kv_cache.py
index 00e13a7d8..914667fb4 100644
--- a/tests/test_kv_cache.py
+++ b/tests/test_kv_cache.py
@@ -102,11 +102,25 @@ def test_memory_stats(self):
         compressor = KVCacheCompressor(head_dim=128, k_bits=3, v_bits=3)
         stats = compressor.memory_stats(seq_len=1024, num_layers=32, num_heads=32)
 
-        # K: 3 bits/val + norm overhead, V: 3 bits/val
-        # Ratio vs fp16 (16 bits): 16 / ((3+3)/2 + overhead) ≈ 2.5-3x
-        assert stats["compression_ratio"] > 2.0
+        # Combined K/V fp16 baseline: 32 bits/value pair.
+        # For 3-bit K and V, actual stored metadata gives ~4.74x compression.
+        assert stats["compression_ratio"] > 4.0
         assert stats["compressed_mb"] < stats["original_mb"]
 
+    def test_memory_stats_exact_accounting(self):
+        """Memory stats should match the actual K/V storage layout."""
+        compressor = KVCacheCompressor(head_dim=128, k_bits=3, v_bits=3)
+        stats = compressor.memory_stats(seq_len=1, num_layers=1, num_heads=1)
+
+        # One K vector and one V vector at head_dim=128:
+        # - Original fp16 K/V pair: 128 * 2 bytes * 2 tensors = 512 bytes
+        # - K compressed: 128 * 3 bits + 64 bits of norms = 448 bits = 56 bytes
+        # - V compressed: 128 * 3 bits + 32-bit norm = 416 bits = 52 bytes
+        # - Total compressed = 108 bytes
+        assert stats["original_mb"] == pytest.approx(512 / 1024 / 1024)
+        assert stats["compressed_mb"] == pytest.approx(108 / 1024 / 1024)
+        assert stats["compression_ratio"] == pytest.approx(512 / 108)
+
     def test_metadata_stored(self):
         """Compressed cache should store correct metadata."""
         compressor = KVCacheCompressor(head_dim=64, k_bits=3, v_bits=3)
diff --git a/turboquant/kv_cache.py b/turboquant/kv_cache.py
index 80c61f9cf..ce222666a 100644
--- a/turboquant/kv_cache.py
+++ b/turboquant/kv_cache.py
@@ -156,12 +156,18 @@ def memory_stats(self, seq_len: int, num_layers: int, num_heads: int) -> dict:
         Returns dict with original_mb, compressed_mb, ratio.
         """
         n_vectors = num_layers * num_heads * seq_len
-        original_bytes = n_vectors * self.head_dim * 2  # fp16
-
-        # K: b bits per coord + 32-bit norm
-        k_bits_total = n_vectors * (self.head_dim * self.k_bits + 32)
-        # V: b bits per coord (no norm needed for MSE-only)
-        v_bits_total = n_vectors * self.head_dim * self.v_bits
+        # Original KV cache stores both K and V in fp16.
+        original_bytes = n_vectors * self.head_dim * 2 * 2
+
+        # K uses full TurboQuant:
+        # - d * k_bits total quantized bits
+        # - 32-bit vector norm
+        # - 32-bit residual norm
+        k_bits_total = n_vectors * (self.head_dim * self.k_bits + 64)
+        # V uses MSE-only PolarQuant:
+        # - d * v_bits quantized bits
+        # - 32-bit vector norm
+        v_bits_total = n_vectors * (self.head_dim * self.v_bits + 32)
 
         compressed_bytes = (k_bits_total + v_bits_total) / 8