A video encoding method determines the best video encoding mode for a macroblock in the SKIP mode and comparing this cost with other modes. This avoids sub-pixel interpolations for fractional pixels. This models the cost function in a quadratic model and computes the cost for a nearest integer pel and plural adjacent integer pels. This permits determination of the coefficients of the quadratic model. An estimated cost is obtained using the actual fractional pel position in the quadratic model. This can be used for obtaining the cost of a P Skip mode. This can be used for the decision of B direct or B skip modes in B frames.