Techniques and tools are described for compensating for rounding when estimating sample-domain distortion in the transform domain. For example, a video encoder estimates pixel-domain distortion in the transform domain for a block of transform coefficients after compensating for rounding in the DC coefficient of the block. In this way, the video encoder improves the accuracy of pixel-domain distortion estimation but retains the computational advantages of performing the estimation in the transform domain. Rounding compensation includes, for example, looking up an index (from a de-quantized transform coefficient) in a rounding offset table to determine a rounding offset, then adjusting the coefficient by the offset. Other techniques and tools described herein are directed to creating rounding offset tables and encoders that make encoding decisions after considering rounding effects that occur after an inverse frequency transform on de-quantized transform coefficient values.