Redneck rule of thumb is 1 beer can spacing/clearance inside the transom. A beer can measures a bit shy of 5", 6" won't hurt.
Years ago I gave faith a try and used a 12" Crescent Wrench to measure the snapper we were catching because I had nothing else. Sure enough, a 12" crescent is exactly 12" long (same for 10", 8" etc.).
Height should be as low as possible with say 3" minimum clearance all around.
This is the part that confuses me, dog leg normally limits how low can I go, cable is the cheating way.