diff --git a/src/components/autocomplete/js/autocompleteController.js b/src/components/autocomplete/js/autocompleteController.js
index 0ddb74c42d6..ecb7644523d 100644
--- a/src/components/autocomplete/js/autocompleteController.js
+++ b/src/components/autocomplete/js/autocompleteController.js
@@ -143,7 +143,7 @@ function MdAutocompleteCtrl ($scope, $element, $mdUtil, $mdConstant, $mdTheming,
 
     // Automatically determine dropdown placement based on available space in viewport.
     if (!position) {
-      position = (top > bot && root.height - top - MENU_PADDING < dropdownHeight) ? 'top' : 'bottom';
+      position = (vrect.top + MENU_PADDING > dropdownHeight) ? 'top' : 'bottom';
     }
     // Adjust the width to account for the padding provided by `md-input-container`
     if ($attrs.mdFloatingLabel) {