A digital-to-analog converter, or DAC, takes your digital audio content and transforms it into analog so that your sound system can amplify and play it. It's through this process that you're actually able to listen to audio stored in a digital file format, like MP3, WAV, or FLAC.
Virtually all music played through a digital device, including the tracks you stream on music services like Spotify and Amazon Music, needs to be converted to analog in order to be heard through a pair of headphones or speakers. Different digital sound formats have different qualities and specs, but they all store music as bits of data. A DAC works as an interpreter that takes these digitally stored recordings and translates them back into an analog signal. This is what you ultimately hear from your output source.
It's actually a chip that conducts this whole process, and this chip can be found in almost every device that has the ability to play music. It's in your phone, your computer, and your TV. The question is, if a DAC chip is already included in all of your devices, why bother to buy a separate one?
Well, the answer comes down to quality. DACs vary in performance, and in most cases, the ones you find integrated in phones, computers, and TVs are not of the best quality. If you really want to enhance the way you experience music, having an external DAC is an imperative, as a high-end DAC will make your music sound as close to its original analog recording as possible. If you own good headphones or speakers and feel that you're not getting the sound you hoped to get, a DAC is your best bet for unlocking the full potential of your device.
There are DACs designed for various needs in several sizes, with some models geared primarily toward headphones and others suited for larger hi-fi setups. As someone who has a background working for an AV/IT installation company, there are several primary factors I take into account when selecting a DAC, including audio quality, compatibility, and user experience. For more detailed information about all of the features you should look out for when purchasing a DAC, be sure to read our additional buying advice.
After deciding what type of DAC is best for your needs, there are plenty of models to choose from. To help narrow the field, we've picked the best DACs you can buy for a variety of audio needs and budgets.
Here are our top picks for the best DACs:Updated on 7/14/2020 by Steven Cohen: We replaced the FiiO E10K with the FiiO K3 as our pick for best budget DAC and explained why. Added links to related articles.