Introduction
Let’s be honest: Most DAC reviews on the internet are either overly emotional or full of audiophile jargon that doesn’t help anyone make a decision. This guide is different. I’m writing it for people who care about value for money, engineering quality, and real-world performance – not imaginary differences.
Whether you’re building your first serious audio setup or replacing a 10-year-old USB interface, here are the DACs that actually make sense in 2025.
What is a DAC (Digital-to-Analog Converter)?
A DAC – short for Digital-to-Analog Converter – is a device that takes digital audio data (from your PC, streamer, phone etc.) and converts it into an analog signal that your amplifier or headphones can use. Every digital source already has a DAC built in. But in most cases, especially with laptops or phones, it’s a cheap, noisy, poorly shielded component. That’s why using an external DAC can noticeably improve sound quality – not because it “colors” the sound, but because it avoids noise and distortion introduced by weak internal circuits.
What Really Matters in a DAC?
There’s a lot of debate in forums about which DAC “sounds best”. In reality, most modern DACs measure transparently. What makes the real difference is implementation – not chip branding or audiophile marketing. Here’s what to focus on:
- Power supply quality (linear is great, but not essential)
- USB implementation (some budget models still suffer from jitter)
➡️How to use a Raspberry PI as a high-quality audio endpoint - Output stage and SNR – especially if driving headphones
- Compatibility (USB class 2, ASIO, DSD, Roon Ready, etc.)
- Form factor and I/O (balanced outs, preamp mode, remote control)
Forget about marketing terms like “musicality” or “velvety highs”. If it’s transparent and quiet – it’s good.
DAC Chip (ESS, AKM, R-2R?)
These are the heart of the DAC.ESS and AKM chips dominate the market – they’re reliable, clean, and cheap. R-2R DACs use resistor ladders and are often seen as more “natural-sounding,” but also more expensive and sensitive to implementation. Truth is, the chip matters less than how it’s integrated.
Output Stage
This is the analog part of the DAC. It determines how clean and strong the signal is when it leaves the device. A good output stage avoids distortion and preserves signal integrity – especially important if you use long cables or low-impedance gear.
Power Supply
Clean power = clean signal. DACs powered via USB often suffer from noisy power, unless they’re properly filtered. Some desktop DACs use external power bricks or linear PSUs, which tend to perform better.
USB Implementation
Not all USB inputs are created equal. A well-designed USB receiver will be asynchronous, galvanically isolated, and capable of handling high-resolution formats without introducing jitter or dropout.
Filter Options / Oversampling
Most modern DACs offer digital filter choices (fast roll-off, slow roll-off, NOS etc.).In practice, the audible difference is subtle – if at all noticeable. Feel free to experiment, but don’t expect night and day changes.
Preamp & Headphone Output
Some DACs include a volume-controlled preamp output or headphone amp. This is useful for compact setups, especially if you want to use your DAC to control a power amplifier or plug in headphones. But be aware: many budget DACs have weak headphone stages. Always check specs and reviews if you plan to drive demanding headphones directly. Easier to drive and more common high-end headphones such as the Sennheiser HD6xx series or an AKG 712 won’t be a tough load as say magnetostatic headphones from Hifiman such as their Susvara / Sundara.
Infobox: Ignore These DAC Myths
“You need a $2000 DAC to hear real detail.”
→ No, a $200 DAC can be audibly transparent.
“R-2R sounds more analog and emotional.”
→ Only if the design is right. Otherwise it’s marketing.
“Balanced always sounds better.”
→ Only useful with proper balanced gear and long cable runs.
🏆 Best DACs by Price Category
Under $150 – Budget But Competent
These DACs won’t blow your mind, but they’ll outperform most integrated headphone jacks or entry-level interfaces.
| DAC | Key Features | Notes | Link |
|---|---|---|---|
| FiiO K5 Pro ESS | ESS DAC, headphone out, coax/optical | All-in-one box with decent output stage | Amazon |
| S.M.S.L Sanskrit 10th MKII | AK4493, remote, USB-C | Surprisingly refined for the price | Amazon |
| Douk Audio U2 Pro (advertisement link) | USB to Coax/I2S | Not a DAC, but great as USB bridge | Amazon |
➡️ Recommendation: Sanskrit 10th MKII – excellent value, works well with linear PSU upgrades later.
$150–500 – The Real Sweet Spot
| DAC | Key Features | Notes | Link |
|---|---|---|---|
| Topping E30 (advertisement link) II / L30 II Stack | DAC + Headamp, AKM, remote | Great combo, proven performance | Amazon |
| SMSL SU-9n (advertisement link) | ES9038, balanced out, Bluetooth | Top-tier chip, great measurements | Amazon |
| Khadas Tone2 Pro | Compact, balanced out | Good sound, unique form factor | Amazon |
➡️ Recommendation: SU-9n – balanced outputs and solid engineering at a reasonable price.
$500–1000 – Desktop Reference Level
| DAC | Key Features | Notes | Link |
|---|---|---|---|
| RME ADI-2 DAC FS | Studio-grade features, EQ, remote | Amazing tool for tweakers | Amazon |
| Gustard X18 | Sabre DAC, full balanced, great PSU | High-end sound without the hype | Amazon |
| SMSL DO200 MKII | Dual ES9068, MQA, XLR | Transparent and clean | Amazon |
| Eversolo DMP-A8 (advertisement link) Choose the DMP-A6 (advertisement link) if you must spend less than 1000 Euros, skip the A6 Master Edition. Also ignore the A10 for now as it’s not really audibly better in my opionion |
Reference-grade DAC, music server, streamer, analog preamp, XLR, remote |
This is the real deal if you’re looking for an amazing all-in-one solution. I’ve owned the A8 over a year and would never go back |
Read My Review |
➡️ Recommendation: Gustard X18 – clean, neutral, no nonsense.
My Setup Recommendations
- Budget starter: SMSL Sanskrit 10th MKII
- All-in-one desktop: FiiO K5 Pro ESS
- Reference transparency: SMSL SU-9n (advertisement link)
- Feature-rich workstation: RME ADI-2 FS
- High-end value pick: Gustard X18
- End-game pick: Eversolo DMP-A8 (advertisement link)
And no, you don’t need to spend more unless you already optimized everything else in your chain. You will be shocked to hear a $500 DAC vs a $3000 DAC playing on $40.000 loudspeakers. The differences are tiny.
FAQ – Quick Answers for the Confused
- Do DACs really sound different? Not unless you’re comparing bad ones to great ones. Most differences are subtle at best.
- Should I go balanced? Only if your amp supports it and you have long cable runs – otherwise, RCA is fine. Learn more about balanced topology and how it actually works.
- Is MQA worth it? No. It’s mostly marketing. Stick with lossless FLAC or PCM.
- Can I use a cheap linear power supply to improve sound? Sometimes, especially with DACs powered by USB. But it’s rarely night and day.
Further Reading
Bonus for my Readers
🎁 Free PDF: “5 Real Ways to Optimize Your Digital Audio Chain (That Actually Matter)”
→ Click here to get the checklist.
Summary
There are many DACs out there. Most sound great. Your job is to choose the one that offers:
- Clean output
- Good build quality
- Smart design choices (not flashy features)
- Reasonable price for what you actually hear
This guide is updated regularly – check back or sign up to stay informed.
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OMG! You are god sent. None of the audiophile grade equipment companies are present in India at this time except Fiio. And my last amp E11 was not upto my taste. Just bought a Meier Audio Stepdance from another guy and was looking for a decent DAC. First choice being dragonfly and second ans cheaper Fiio E07k. But, now thinking of ordereding the HiFiMeDIY. I am short on money and only care about SQ. Besides importing from US attracts huge customs.
Saw both your cheap alternatives a.k.a
1. WM8740 based Chinese chipset and
2. HiFiMeDIY
While both are based on very good chips. Which sounds better? HiFiMeDIY costs twice as much but I can pay for that.
The WM8740 is damned good, with better opamps than stock, a brutal killer machine IMHO. But you need a case for it. The Hifimediy stuff on the other hand is plug and play. Keep in mind the WM8740 board cannot do high-res USB, only 16/48. If that’s a deal-breaker for you, you cannot go wrong with Hifimediy – nice products, good chips and great customer service.
I own oppo Ha-2 with ESS Sabre ES9018K2M. I am thinking to buy a desktop configuration composed of SMSL M8 + VA2 + P1 + W6. Still, would it be a difference between these DACs ?
Which is better sound quality and features:
X20Pro or Benchmark DAC2?
Wow, amazing articles and the right dose of info for an aspiring audiophile.
I would like to get your advice on pairing a Swans D1080-IV speakers with a class C DAC
1.HiFime DIY
2.Fiio D3
3.WM8740
Which of these combo wud be the best. The primary source of music is a a laptop.
HifimeDIY wud be tough to source in India though.
Hopefully Fiio is available here.
On your recommendation I bought The HIfiDIY DAC. After about 30 days it reached me. Unfortunately it lasted for only 2 days. Though kudos for their Consumer service, I got my refund. I am more eager now to try out SMSL M8, though the cost is little on higher side for me and again sending back to China for service is a down-side but I really liked that Sabre sound.
Get the WM8740 . it’s a killer machine for the money. Now you can find it already mounted inside a box on Ebay. Also you need to replace the op amp that comes with it. Also, another is the Toping D30. This is also a very good dac for about $90.00 -$120.00 on Ebay or AliExpress. It compares favorably with the SMSL M8 for less money. It’s a no brainer.
[…] Source: At Last…The Ultimate DAC Buyers Guide (2016 Edition) – Music Server Tips […]
As to using Amazon: since returns are so easy, I wonder if products returned as “defective” are not sent out a second time, to another customer, with no further checking on the original (purported) problem. This would be hard to prove, but does fit a pattern we’ve seen for electronics purchased from Amazon. Such a practice takes consumers one step further down a road that has become quite common, namely, let the customer do the Quality Control work.
If you can stretch to the SMSL M8 bundle, you will NOT regret it! I’ve been using mine almost daily for the past six months, and it is still rewarding and surprising me. I’m finding that some albums I have in my collection, that have sat unloved and unplayed now sound incredible and very engaging and appealing, and I now love those albums! I mainly play vinyl rips and Super Audio CD / DVD-Audio, and some HDtracks releases (they vary from good to awful). It does make standard audio CDs sound much better, but it also reveals their flaws if present; in my opinion the vinyl rips make returning to CD very unpleasant, which is why I will now be buying back the Technics turntable I gave away in 2013! I will then make my own high quality rips to play back on the M8 system. I also find the SMSL VA2 headphone amp in the bundle powers my AKG K712 PRO headphones very well, and it was a much needed purchase.
Bought that WM8740 board and modified with WM8741 and better opamp.
Driven by Baby Breeze DDC it sounds great for the money.
Waiting for a case from China and this will be a nice unit!
I see that you included the Emotiva XDA-2. I’m more interested in a portable DAC. Do you have any experience with the Emotiva Audio Big Ego? It’s $219 and seems to have excellent specifications. I do have some other Emotiva equipment and they seem to be very solid.
Thanks,
Wayne
I haven’t tested other Emotiva units but I hope to get my hands on more soon
I’m not quite sure how you left the Oppo HA-1 off this list, unless you simply hadn’t reviwed it or listened to it?
I just ordered two DACs to compare and buy one: the Denon DA-300USB and the Audioengine D1.
The Denon DAC gives a nice sound. There was a BIG difference with the Audioengine D1, which I sent back. With the Audioengine D1, the sound was not much better than without a DAC.
I would sugest that the words ‘Chord’ and ‘Mojo’ need to be on this page somewhere. Whether we’re talking bang-for-buck, overall sound quality or range of uses, the Mojo is remarkable. Oh and it’s portable and has pretty lights on it. What’s not to love?
Thanks for the update. However I do not understand this list.
Because when I look at the price value only three DAC’s should be on this list:
Best product and best value in Reference class: Gustard X20u (Also better value than best product in class A)
Best value in class A: SMSL M8 (Also better value than best product in class B)
Best value in class B: Schiit Modi 2 Uber (Also better product and better value than best product in class C)
Or am I wrong?
Well, this isn’t a HiFi magazine;) Rankings are roughly based on my personal experience with the DACs. Sure, I could trim down the list but I’d like to readers choose. Keep in mind differences between DACs are usually frighteningly small…but they are noticeable.
A refreshing look/take on (sensible) hi-fi ! (nice work).
Your statement is painfully inaccurate, quote:
” Keep in mind differences between DACs are usually frighteningly small…but they are noticeable.”
That is more-or-less) a ‘rookie’ comment; for if true, there would be no reason to have any categorical listing at all -simply purchase the dirt-cheapest (DAC) you can find and (according to you) be 99% “there”.
peter jasz
JemmyAudio DAD1pro ES9018 DAC
Hi, where are chord mojo and ifi micro idsd, i think this two are better then all the other dacs over here!
I heard ifi idsd is very good; Just know about it ;
Price wise very high.
Chord DACs are great, working on a Mojo review…stay tuned
Hello, thank you for this article !
Have you tested this model ?
http://hifimediy.com/DACs/ready-made-dacs/SPDIF-9018-DAC
I use Bose Companion 50 at home, I would use this DAC for my TV Sharp, what do you think ?
Hi,
I’m thinking about a setup for my room. Mostly it will be for listening to music from Spotify at high resolution. I’ll have a pair of KRK Rokit RP5 G3, which are very decent active studio monitors for less than £200. I’ll get the music from a Chromecast Audio. The first option would be to get the unbalanced analog signal from the Chromecast, but I guess we all agree that is absolutely discarded.
Second option is connecting an intermediate DAC with unbalanced RCAs. There are many decent DACs for less than £200 (even £100) for this option.
The third option is go for a DAC with balanced XLR. The problem is that the market niche is too narrow, most DACs with XLR balanced outputs comes with headphone amps, many other inputs/outputs, etc., or they just got to premium or too PRO approaches. The Teac UD-H01 is the best option I’ve found, at £300.
My question: taking into account I have some decent active studio monitors, is it worth spending double the price (£300 instead of £150) in a DAC with balanced outputs instead of just unbalanced? I know it’s worth £150 for a proper conversion, but it’s worth £300 for a proper conversion plus balanced outs?
Thanks for your help. In any case, this article was super useful.
Going balanced does not necessarily improve the sound quality. In fact it depends on the implementation and whether the DAC really comes with a fully balanced output stage. If that’s not the case, I wouldn’t sweat over XLR outputs and just use RCA unbalanced.
What ever happened to the Audioengine D1 DAC/Headphone Amp “poor man’s audiophile marvel”… ??? I’m surprised that it’s not even mention… So many well respected reviewers have it on their list and why isn’t it here???
Well, I’m just a hobbyist and I can only speak for the products I own or have tried. I recommend those DACs to my friends or family members because I have experience with them. I agree there are many more marvels…but my time is too limited to test them all :)
hello,
have you ever tried a teac dac ? could you have access to one ?
what do you think of the akm vs sabre chip ?
thank you
alex
Have briefly tried Teac UD-503 (or NT-503, don’t remember the exact model name). Looks like a great one but I haven’t got the cash to buy all DACs for testing ;) AKM chips are fantastic, Accuphase also uses them in their top DACs. Cannot go wrong with AK-4497 based DACs if manufacturers did their homework.
Hi! I bought the SMSL M8 after reading your post, and I have to say that I´m very happy with it. It sounds great! I even use the optical input with my CD player, cause it sounds better. Thanks a lot!
I was considering your recommended SMSL M8 then I read the reviews on the Topping D30. This DAC is $100 cheaper. Do you have any thoughts on the D30?
Thanks.
Thank you very much ! I struggled to choose a nice DAC for 500-600€ and I was about to purchase an Arcam IRDACII ! Then I came across this guide and ordered myself a SMSL M8 + Linear power supply : it blew me away ! I muste admit it is not a very plug and play device, but once properly configured it is worth every penny !
WHAT DO YOU THINK ABOUT THE X-SABRE PRO ?
Please let me know if you have any experience about that.
Best regards
Sebastiao
Haven’t tried this one yet but surely looks awesome from internal pictures
Hey,
I enjoyed reading the blog but unfortunately a lot of tech talk went way over head.
Ive just started to look at DACs and no very little when it comes to sound.
I do have a question and would like your opinion.
I have a iPod classic maybe 5th gen. I want to have the best portable sound i can get. I have b&w p5 headphones/ momentum 2 seins earphones.
What should i do, get a dac like mojo or opportunity and connect to iPod.
Or should i just buy a new portable player like aztell and Kern. Willing to spend €500. What would give me the best sound?
Thanks
*opportunity = Oppo ha2
Get Mojo. Don’t buy A&K.
I know most people use DACs for music, but I’m looking for a DAC (entry or mid level, not expensive) that won’t have a lip-sync delay when used with Blu-ray or other video source. This is the first I’ve needed one, so I haven’t tried any yet. I saw the really low-cost FIIO D3 on Amazon, but 1 reviewer said it caused lip-sync video issues.
Thanks.
Which is better?
X20Pro or the Benchmark DAC2?
I’m new to all this stuff, and I have a question. Would the AudioQuest Dragonfly work with a pair of Sennheiser Game Zero’s? I am trying to find a cheap DAC that would work but I don’t anything about this stuff. Thanks in advance!
I’m waiting for you to update your opinion on M8A and M9.
Thank you!
I was considering your recommended SMSL M8 then I read the reviews on the Topping D30. This DAC is $ 100 cheaper. Do you have any thoughts SQ on the D30?
Thanks.
What’s with all the junky full of midrange glare DACs on your list. When was the last time you had a proper hearing test? Probably have a 7-8 dB drop at 2500-3000 kHz and maybe another one at 8k in your hearing.
My hearing tests perfectly fine, thank you. Calm down buddy, this is only audio :)
Hello there, again. I bought an SMSL M8 DAC following your advice, and I´m very happy with it. I have now the chance to buy a Gustard X20pro because a friend of mine is travelling and offered to bring it to me. Is there a big audio quality difference worth the money?I mean, will I notice it that much or is it just “a small difference on the high end” (i.e.)? (I have an excellent audio system).. Thank you, I´d really appreciate your thoughts about it.
Diego
fantastic write up wondering if you heard of douk audio/nobsound ? I’ve been looking at a dac which sounds like it’s the dogs bollocks with specs but have no previous with the company the one I’m looking at comes with Ti’s dsd1796 asynchronous xmos u8 audio decoding but being I think a Chinese company going under 2 names (I think) I’m a bit worried of build quality and other cheap components hiding in there.
So any information would be appreciated.
Kind regards 😁
Any experience with the questyle 400i I know it is not out yet but it has been showcased at several shows this year.
Hi there! Awesome article! I currently have the Aries Mini and would love to try another DAC that has Airplay capabilities. Do you have any recommendations?
Thanks!
Jake
I´ve recently bought the Gustard X20pro following your advices… and it´s incredible. I can´t imagine a better sounding DAC. I had the SMSL M8 before, but this is way superior. Thanks a lot!
Just some food for thought. Some mobile phone manufacturers are taking an audiophile approach. The LG V30 has a very capable ES9218 (32/384kHz PCM) DAC and compares nicely with my DF Red 1.0 in your C category. Coupled with the USB Pro Android app, which takes full advantage of the chipset capabilities, I can even stream my local hi-res network audio. In essence, you get a smartphone + DAC in one good sounding mobile package.
(The rest of my equipment: GustardX20u (ES9018), Chord Mojo, Grado RS2e, HD600)
what about DAC’s built into newer receivers or amps ?
my older Denon avr 3801 is missing several modern features and i need a DAC so maybe better for me to find a replacement with a built in DAC?
I was wondering did you ever tried the diy kit or assembled chinese es9028 or 9038 chip dacs from Breeze audio?
The pcb looks very professional and looks a bit like Gustard.. Maybe it’s a clone?
They are reasonable priced. But wonder about the quality.
On eBay it’s the seller minishow.
Would be great if you test one like that.
Great insights in this guide! The detailed comparisons between different DACs really helped clarify my options. I appreciate the tips on what to look for based on different use cases. Looking forward to upgrading my setup!
This guide is incredibly helpful! I’ve been overwhelmed by the choices in DACs lately, but your breakdown of features and recommendations really clarifies things. I appreciate the tips for matching DACs with different music servers. Looking forward to upgrading my setup!
Would Eversolo A6 with Gustard X18 match Eversolo A8 in sound quality?
I think so. You’d essentially get the same streamer. The A8 only makes sense if you want an analog input, pure analog volume control and the better DAC. But with a Gustard X18, you get everything except these details – that is, if you can live with two separate devices