An embodiment is directed to a method for selecting a predictive macroblock partition from a plurality of candidate macroblock partitions in motion estimation and compensation in a video encoder including determining a bit rate signal for each of the candidate macroblock partitions, generating a distortion signal for each of the candidate macroblock partitions, calculating a cost for each of the candidate macroblock partitions based on respective bit rate and distortion signals to produce a plurality of costs, and determining a motion vector from the costs. The motion vector designates the predictive macroblock partition.