An apparatus and method for limiting bit rate of compressed data is disclosed. The apparatus and method allows the generation of parameters for encoding digital image data based on the data bit rate resulting from the use of different parameters. In one embodiment, a statistical analysis is performed to determine the different parameters. The use of parameters results in a bit rate that would prevent a decoder to stall during decompression while allowing the encoder compress without affecting the quality. Therefore, a more efficient encoding and decoding can be achieved.