diff --git a/knockout-sortable.js b/knockout-sortable.js
index fedcff7..3c9b99f 100644
--- a/knockout-sortable.js
+++ b/knockout-sortable.js
@@ -138,7 +138,11 @@
                 // drop an item above the 3rd visible item, but the 2nd visible item
                 // has an actual index of 5.
                 if (e.item.previousElementSibling) {
-                    newIndex = to().indexOf(ko.dataFor(e.item.previousElementSibling)) + 1;
+                    newIndex = to().indexOf(ko.dataFor(e.item.previousElementSibling));
+			
+		    if (newIndex < originalIndex) {
+			newIndex++;
+		    }
                 }
 
                 // Remove sortables "unbound" element