diff --git a/src/config.c b/src/config.c
index d1c0236f..0fbdcdb5 100644
--- a/src/config.c
+++ b/src/config.c
@@ -540,34 +540,42 @@ static int config_parse(config_t *cfg, const char *name, const char *value)
       cfg->gop[0].poc_offset = 8; cfg->gop[0].qp_offset = 1; cfg->gop[0].layer = 1; cfg->gop[0].qp_factor = 0.442;  cfg->gop[0].is_ref = 1;
       cfg->gop[0].ref_pos_count = 0;
       cfg->gop[0].ref_neg_count = 3; cfg->gop[0].ref_neg[0] = 8; cfg->gop[0].ref_neg[1] = 12; cfg->gop[0].ref_neg[2] = 16;
+      cfg->gop[0].weight = 6;
 
       cfg->gop[1].poc_offset = 4; cfg->gop[1].qp_offset = 2; cfg->gop[1].layer = 2; cfg->gop[1].qp_factor = 0.3536; cfg->gop[1].is_ref = 1;
       cfg->gop[1].ref_neg_count = 2; cfg->gop[1].ref_neg[0] = 4; cfg->gop[1].ref_neg[1] = 8;
       cfg->gop[1].ref_pos_count = 1; cfg->gop[1].ref_pos[0] = 4;
+      cfg->gop[1].weight = 6;
 
       cfg->gop[2].poc_offset = 2; cfg->gop[2].qp_offset = 3; cfg->gop[2].layer = 3; cfg->gop[2].qp_factor = 0.3536; cfg->gop[2].is_ref = 1;
       cfg->gop[2].ref_neg_count = 2; cfg->gop[2].ref_neg[0] = 2; cfg->gop[2].ref_neg[1] = 6;
       cfg->gop[2].ref_pos_count = 2; cfg->gop[2].ref_pos[0] = 2; cfg->gop[2].ref_pos[1] = 6;
+      cfg->gop[2].weight = 3;
 
       cfg->gop[3].poc_offset = 1; cfg->gop[3].qp_offset = 4; cfg->gop[3].layer = 4; cfg->gop[3].qp_factor = 0.68;   cfg->gop[3].is_ref = 0;
       cfg->gop[3].ref_neg_count = 1; cfg->gop[3].ref_neg[0] = 1;
       cfg->gop[3].ref_pos_count = 3; cfg->gop[3].ref_pos[0] = 1; cfg->gop[3].ref_pos[1] = 3; cfg->gop[3].ref_pos[2] = 7;
+      cfg->gop[3].weight = 2;
 
       cfg->gop[4].poc_offset = 3; cfg->gop[4].qp_offset = 4; cfg->gop[4].layer = 4; cfg->gop[4].qp_factor = 0.68;   cfg->gop[4].is_ref = 0;
       cfg->gop[4].ref_neg_count = 2; cfg->gop[4].ref_neg[0] = 1; cfg->gop[4].ref_neg[1] = 3;
       cfg->gop[4].ref_pos_count = 2; cfg->gop[4].ref_pos[0] = 1; cfg->gop[4].ref_pos[1] = 5;
+      cfg->gop[4].weight = 2;
 
       cfg->gop[5].poc_offset = 6; cfg->gop[5].qp_offset = 3; cfg->gop[5].layer = 3; cfg->gop[5].qp_factor = 0.3536; cfg->gop[5].is_ref = 1;
       cfg->gop[5].ref_neg_count = 2; cfg->gop[5].ref_neg[0] = 2; cfg->gop[5].ref_neg[1] = 6;
       cfg->gop[5].ref_pos_count = 1; cfg->gop[5].ref_pos[0] = 2;
+      cfg->gop[5].weight = 3;
 
       cfg->gop[6].poc_offset = 5; cfg->gop[6].qp_offset = 4; cfg->gop[6].layer = 4; cfg->gop[6].qp_factor = 0.68;   cfg->gop[6].is_ref = 0;
       cfg->gop[6].ref_neg_count = 2;  cfg->gop[6].ref_neg[0] = 1; cfg->gop[6].ref_neg[1] = 5;
       cfg->gop[6].ref_pos_count = 2; cfg->gop[6].ref_pos[0] = 1; cfg->gop[6].ref_pos[1] = 3;
+      cfg->gop[6].weight = 2;
 
       cfg->gop[7].poc_offset = 7; cfg->gop[7].qp_offset = 4; cfg->gop[7].layer = 4; cfg->gop[7].qp_factor = 0.68;   cfg->gop[7].is_ref = 0;
       cfg->gop[7].ref_neg_count = 3; cfg->gop[7].ref_neg[0] = 1; cfg->gop[7].ref_neg[1] = 3; cfg->gop[7].ref_neg[2] = 7;
       cfg->gop[7].ref_pos_count = 1; cfg->gop[7].ref_pos[0] = 1;
+      cfg->gop[7].weight = 2;
     } else if(atoi(value)) {
       fprintf(stderr, "Input error: goplen must be 8\n");
       return 0;
diff --git a/src/config.h b/src/config.h
index 65da7243..d2e3655f 100644
--- a/src/config.h
+++ b/src/config.h
@@ -31,6 +31,7 @@
 typedef struct {
   double qp_factor;
   int8_t qp_offset;    /*!< \brief QP offset */
+  int8_t weight;
   int8_t poc_offset;   /*!< \brief POC offset */
   int8_t layer;        /*!< \brief Current layer */
   int8_t is_ref;       /*!< \brief Flag if this picture is used as a reference */
diff --git a/src/encoder_state-ctors_dtors.h b/src/encoder_state-ctors_dtors.h
index d21831f2..62144705 100644
--- a/src/encoder_state-ctors_dtors.h
+++ b/src/encoder_state-ctors_dtors.h
@@ -34,7 +34,6 @@ struct encoder_state_t;
 
 int encoder_state_init(struct encoder_state_t * child_state, struct encoder_state_t * parent_state);
 void encoder_state_finalize(struct encoder_state_t *state);
-void encoder_state_init_lambda(struct encoder_state_t *state);
 
 
 #endif // ENCODER_STATE_CTORS_DTORS_H_
diff --git a/src/encoderstate.c b/src/encoderstate.c
index 1c8040dc..5d70c30e 100644
--- a/src/encoderstate.c
+++ b/src/encoderstate.c
@@ -49,37 +49,6 @@
 # define LMBD 1.0
 #endif
 
-/*!
-  \brief Initializes lambda-value for current QP
-
-  Implementation closer to HM (Used HM12 as reference)
- */
-void encoder_state_init_lambda(encoder_state_t * const state)
-{
-  double qp = state->global->QP;
-  double lambda_scale = 1.0 - CLIP(0.0, 0.5, 0.05*(double)state->encoder_control->cfg->gop_len);
-  double qp_temp      = qp - 12;
-  double lambda;
-
-  // Default QP-factor from HM config
-  double qp_factor = state->encoder_control->cfg->gop_len ? state->global->QP_factor : 0.4624;
-
-  if (state->global->slicetype == SLICE_I) {
-    qp_factor=0.57*lambda_scale;
-  }
-
-  lambda = qp_factor*pow( 2.0, qp_temp/3.0 );
-
-  if (state->global->slicetype != SLICE_I ) {
-    lambda *= 0.95;
-  }
-
-  lambda *= LMBD;
-
-  state->global->cur_lambda_cost = lambda;
-  state->global->cur_lambda_cost_sqrt = sqrt(lambda);
-}
-
 int encoder_state_match_children_of_previous_frame(encoder_state_t * const state) {
   int i;
   for (i = 0; state->children[i].encoder_control; ++i) {
@@ -802,20 +771,10 @@ static void encoder_state_new_frame(encoder_state_t * const state) {
       encoder_state_ref_sort(state);
     }
 
-    if (state->encoder_control->cfg->gop_len) {
-      if (state->global->slicetype == SLICE_I) {
-        state->global->QP = state->encoder_control->cfg->qp;
-        state->global->QP_factor = 0.4624;
-      }
-      else {
-        state->global->QP = state->encoder_control->cfg->qp +
-          state->encoder_control->cfg->gop[state->global->gop_offset].qp_offset;
-        state->global->QP_factor = state->encoder_control->cfg->gop[state->global->gop_offset].qp_factor;
-      }
-        
-    } else {
-      state->global->QP = select_picture_QP(state);
-    }
+    double lambda = select_picture_lambda(state);
+    state->global->cur_lambda_cost = lambda;
+    state->global->cur_lambda_cost_sqrt = sqrt(lambda);
+    state->global->QP = lambda_to_QP(lambda);
 
   } else {
     //Clear the bitstream if it's not the main encoder
@@ -826,9 +785,6 @@ static void encoder_state_new_frame(encoder_state_t * const state) {
     //Leaf states have cabac and context
     cabac_start(&state->cabac);
     init_contexts(state, state->global->QP, state->global->slicetype);
-
-    // Initialize lambda value(s) to use in search
-    encoder_state_init_lambda(state);
   }
   
   //Clear the jobs
diff --git a/src/encoderstate.h b/src/encoderstate.h
index 59a0a1d8..f6bd6f24 100644
--- a/src/encoderstate.h
+++ b/src/encoderstate.h
@@ -89,6 +89,9 @@ typedef struct {
   //! Number of bits written in the current GOP.
   uint64_t cur_gop_bits_coded;
 
+  //! Number of bits targeted for the current GOP.
+  double  cur_gop_target_bits;
+
 } encoder_state_config_global_t;
 
 typedef struct {
diff --git a/src/rate_control.c b/src/rate_control.c
index d3bfc9f6..df190bf0 100644
--- a/src/rate_control.c
+++ b/src/rate_control.c
@@ -25,42 +25,77 @@
 static const int SMOOTHING_WINDOW = 40;
 
 /**
- * \brief Select a QP for encoding the next picture
+ * \brief Allocate bits for the current GOP.
  * \param state the main encoder state
- * \return the QP for the next picture, in range [0, 51]
+ *
+ * If GOPs are not used, allocates bits for a single picture.
+ *
+ * Sets the cur_gop_target_bits of the encoder state.
  */
-int8_t select_picture_QP(const encoder_state_t * const state)
+static void gop_allocate_bits(encoder_state_t * const state)
+{
+  const encoder_control_t * const encoder = state->encoder_control;
+
+  const double avg_bits_per_picture =
+    encoder->cfg->target_bitrate / encoder->cfg->framerate;
+
+  // At this point, total_bits_coded of the current state contains the
+  // number of bits written encoder->owf frames before the current frame.
+  int bits_coded = state->global->total_bits_coded;
+  int pictures_coded = MAX(0, state->global->frame - encoder->owf);
+
+  int gop_offset = (state->global->gop_offset - encoder->owf) % MAX(1, encoder->cfg->gop_len);
+  // Only take fully coded GOPs into account.
+  if (encoder->cfg->gop_len > 0 && gop_offset != encoder->cfg->gop_len - 1) {
+    // Subtract number of bits in the partially coded GOP.
+    bits_coded -= state->global->cur_gop_bits_coded;
+    // Subtract number of pictures in the partially coded GOP.
+    pictures_coded -= gop_offset + 1;
+  }
+
+  double gop_target_bits =
+    (avg_bits_per_picture * (pictures_coded + SMOOTHING_WINDOW) - bits_coded)
+    * MAX(1, encoder->cfg->gop_len) / SMOOTHING_WINDOW;
+  state->global->cur_gop_target_bits = MAX(200, gop_target_bits);
+}
+
+/**
+ * \brief Select a lambda value for encoding the next picture
+ * \param state the main encoder state
+ * \return lambda for the next picture
+ */
+double select_picture_lambda(encoder_state_t * const state)
 {
   const encoder_control_t * const encoder = state->encoder_control;
 
   if (encoder->cfg->target_bitrate <= 0) {
     // Rate control disabled.
-    return encoder->cfg->qp;
+    return exp((encoder->cfg->qp - 13.7223 - 0.5) / 4.2005);
   }
 
-  // At this point, total_bits_coded of the current state contains the
-  // number of bits written encoder->owf frames before the current frame.
-  const int bits_coded = state->global->total_bits_coded;
-  const int pictures_coded = MAX(0, state->global->frame - encoder->owf);
+  if (encoder->cfg->gop_len == 0 || state->global->gop_offset == 0) {
+    // a new GOP begins at this frame
+    gop_allocate_bits(state);
+  } else {
+    state->global->cur_gop_target_bits =
+      state->previous_encoder_state->global->cur_gop_target_bits;
+  }
 
-  const double avg_bits_per_picture =
-    encoder->cfg->target_bitrate / encoder->cfg->framerate;
-
-  // TODO: use picture weights
-  const double target_bits_current_picture =
-    (avg_bits_per_picture * (pictures_coded + SMOOTHING_WINDOW) - bits_coded)
-    / SMOOTHING_WINDOW;
+  const double target_bits_current_picture = (encoder->cfg->gop_len > 0)
+    ? (state->global->cur_gop_target_bits * encoder->cfg->gop[state->global->gop_offset].weight / 22.0)
+    : state->global->cur_gop_target_bits
+  ;
 
   // TODO: take the picture headers into account
   const int pixels_per_picture = encoder->in.width * encoder->in.height;
   const double target_bits_per_pixel = target_bits_current_picture / pixels_per_picture;
 
-  // The following magical constants, -5.7420835 and 18.598408755005686 are
-  // based on the values given in
-  //
-  //   K. McCann et al., "High Effiency Video Coding (HEVC) Test Model 16
-  //   (HM 16) Improved Encoder Description", JCTVC-S1002, October 2014,
-  //   (p. 52 - 54)
-  const int QP = (int)(-5.7420835 * log(MAX(target_bits_per_pixel, 0.001)) + 18.598408755005686);
-  return CLIP(0, 51, QP);
+  const double lambda = 3.2003 * pow(target_bits_per_pixel, -1.367);
+  return CLIP(0.1, 10000, lambda);
+}
+
+int8_t lambda_to_QP(const double lambda)
+{
+  int8_t qp = 4.2005 * log(lambda) + 13.7223 + 0.5;
+  return CLIP(0, 51, qp);
 }
diff --git a/src/rate_control.h b/src/rate_control.h
index 520dc607..45ab0791 100644
--- a/src/rate_control.h
+++ b/src/rate_control.h
@@ -27,6 +27,8 @@
 
 #include "encoderstate.h"
 
-int8_t select_picture_QP(const encoder_state_t * const state);
+double select_picture_lambda(encoder_state_t * const state);
+
+int8_t lambda_to_QP(const double lambda);
 
 #endif // RATE_CONTROL_H_