The storage facility of image and image transfer is an extensive appliance in image compression. Image compression techniques require the proper and effective transforms and encoding methods to reach the aim. In this work, discrete wavelet transform based image compression algorithm is used for decomposing the image. The effectiveness of different Encoder loops are analyzed based on the values of peak signal to noise ratio (PSNR), compression ratio (CR), means square error (MSE) and bits per pixel (BPP). The optimum encoding loop for compression is also found based on the results.