A system and method 100 of using residual feedback in a control loop in a manner that substantially eliminates the steady state error in the predicted states that results from the mismatch in gain between the plant and the model. The control effort used by the estimator to predict the next position is modified to compensate for this difference in gain. By integrating the residual, and modifying the apparent control effort accordingly, the residual is driven to have a mean value of zero. When the residual goes to zero, by definition, the steady state error in the position state goes to zero; and to the extent that the model matches the plant, the velocity state also approaches zero such that the steady state error in the predicted states are substantially eliminated, allowing for improved control.