The invention relates to a fixed point multiplying apparatus and method using an encoded multiplicand. The multiplicand is encoded into an independent binary system instead of a conventional binary system and each bit value of the encoded multiplicand is used as a control signal about an inputted multiplier in order to effectively execute a fixed point multiplication used in a transform algorithm such as the DCT (Discrete Cosine Transformation) in use for a multimedia codec. The multiplication is executed at a high speed with a simple structure and a small gate number.