In this paper, a novel pre-compression rate-distortion optimization algorithm is proposed, which can reduce computation power and memory requirement of JPEG 2000 encoder. It can reduce the wasted computational power of the entropy coder (EBCOT Tier-1) and unnecessary memory requirement for the code-stream. Distortion and rate of coding passes are calculated and estimated before coding, and therefore truncation point is selected before coding. Experimental results show that the computation time of EBCOT Tier-1 and memory requirement for the code-stream can be greatly reduced,especially at high compression ratio. The quality of the proposed algorithm is slightly lower than that of post-compression rate-distortion optimization algorithm.