What Is a DAC?

You buy your first set of fancy headphones or IEMs. You are so impressed by the sound that you start to find the world of high-fidelity quite alluring. Soon, you ask yourself: how much better can my sound get?  This is a common scenario, and investing in your first DAC may be the solution to your quest. Then the next question arises: what is a DAC? Let's explore what a DAC is and what it can do for you.

What is a DAC?

A DAC is an acronym that stands for "Digital to Analog Converter". It is an electrical system that converts any digital signal into an analog one. This means it takes or binary signal of 1's and 0's and transforms it into something like voltage or current. You may not release it, but you use DACs every single day. Any kind of sound you play from your phone or your computer is originally stored in digital form; however, because we humans can’t hear digits, we need it to be converted into sound waves. There needs to be a technology that converts the digital signal into an analog one, and that's where the DAC comes in. 

Why Do I Need a DAC?

If you are already using DACs to convert a digital signal into an analog sound, why would you need an external dedicated DAC? The answer is that some DACs are less efficient than others. This means that the conversion from digital to analog may not be as effective as higher-performing dedicated DACs, which can deliver a truer presentation of the original recording. In short, your music may not sound as good as it could. 

This brings us to high-resolution audio. Digital music files are most commonly made with a technology called Pulse Code Modulation or PCM. PCM involves measuring the amplitude of the analog music signal at consistent intervals. The amplitude is called “bit-depth.” The speed at which the intervals are measured is referred to as the “sample rate.” There are other technologies that measure these digits and amplitudes in different ways, but to keep things simple, let’s look at an example of a PCM file:

A Spotify track, for example, is 16-bit 44.1kHz. This means that a sample of the music is taken a little over 44,000 times per second, while the amplitude is measured with a precision of 16 bits. This a pretty standard measurement, used for most streaming and even during recording in studios. Streaming platforms like Tidal and Qobuz have hi-res files that are 24-bit 192kHz. This higher sample rate of 192kHz allows for more precision and detail in tracks, making it an upgrade from standard files. 

The question then becomes: how well can the DAC return the digital information to its original analog form?

After the initial analog signal gets turned into digital bits, translating it back to analog form distorts the signal a bit. It could sound choppier or not as smooth as an original analog sound. Some basic and mediocre DACs bring in noise or distortion that isn't very pleasant to listen to. Additionally, high-resolution formats can't always be supported without the help of outside gear. That's where the external DAC comes in and saves the day.

Types of DACs

Most DACs these days are capable of decoding high-resolution files in numerous hi-res formats. You'll see the support formats in their technical specifications, along with other specs that show off their capabilities for your listening setup. All DACs have different sound qualities depending on the technology used to design them. Between stand-alone DACs and DAC/Amp hybrids, portable and desktop options, there is a device out there that will help upgrade your listening. 

Stand-Alone DACs

A lot of audiophiles like to have complete control over their audio setup. This means they decide the music source, the type of stand-alone DAC, and finally, the type of amplifier that will execute the DAC’s signal. While they are becoming less popular now, stand-alone DACs allow audiophiles to have more precise control over the audio conversion happening in their listening setup. iFi Audio has a few good stand-alone DAC options, like the Zen DAC Signature pictured below. 

DAC/Amps

Nowadays, simplicity is favored amongst budding audio enthusiasts and casual everyday listeners. Many DACs are combined with amplifiers. The amplifier boosts the audio signal in your listening, allowing for a louder sound that uncovers more detail and color. It helps take some of the strain off the source device. Having the outside equipment allows you to power some harder-to-drive headphones and IEMs with ease. The DAC/Amp combinations are very common; you can consolidate all your outside gear into one device and not have to keep track of a complicated signal flow. Your setup will become simpler and cleaner to use, and depending on the size of your device, more portable as well!

Portable DAC/Amps

Portable DAC/Amps are often ideally designed to be lightweight and small enough to go with you anywhere you go. For the pair of headphones you want to take with you on vacation but still need that extra juice, portable DAC/Amps have you covered. Despite their small size, these portable devices still hold some impressive power for all types of headphones and IEMs. Some come as small as dongles like the FiiO KA11, or with Bluetooth capabilities like the iFi GO Blu. The Chord MOJO 2 remains a flagship for its small size, impressive power, and additional customizable features. 

Also, whether you're a casual listener or a discerning audiophile, the portable DAC/Amp options covered in this article for 2025 cater to a wide range of audio needs and budgets.

Desktop DAC/Amps

Desktop DAC/Amps, of course, tend to be larger and can usually drive more power-hungry headphones. These are devices for people who have a dedicated space for their music listening and aren't concerned with getting their hi-res audio anywhere other than their home. This could mean hooking it up to a pair of nice open-back headphones or a home stereo setup. These desktop DAC/Amps come with not just a more powerful and updated processing system, but also some more adaptability and features to upgrade your listening experience. Between numerous input/output options, digital and analog filters, and precise amplification, the desktop DAC/Amps are certainly more flagship pieces of equipment. 

To upgrade those desktop devices further, getting a unit capable of streaming truly gets you to enhance your listening with a one-stop shop. Shown above, you have the Eversolo DMP-A8 All-in-one Streamer. This unit works as an audio source, as well as an amplifier, DAC, and preamplifier. You can use this for streaming via Spotify or Tidal, or for tuning in to your favorite radio station. A lot of devices nowadays try to become an all-in-one piece to make your audio equipment less bulky and more compact. However, a downside to this is the loss of individual and special elements to craft your sound in a unique way.

Sound Qualities of DACs and DAC/Amps

As mentioned above, DACs and DAC/Amps produce different sound characteristics depending on the chipset used and the type of processing technology employed. For example, some DACs produce a warm, lush profile, while other DACs may sound more neutral in their presentation. Some sound smooth and controlled, while others are dynamic and lively. The sound of a particular DAC can also be offset by the character of the amplifier. So, there are endless possibilities when it comes to pairing various types of headphones with various types of DACs and amplifiers. DAC/Amps can also affect the soundstage. Often, they can widen the space, or manipulate the imaging. So, not only can DACs and DAC/Amps improve sound, but they can also give you creative control over your sound signature.

Should You Invest?

So the question remains: should you invest in a DAC?

Getting a DAC isn't the big decision you may be thinking it is. Getting a $3,000 streamer right out of the gate is a daunting purchase and one you may not find makes a huge difference. Adding a small portable device, like a dongle DAC/Amp may be the perfect gateway to hearing the difference in your listening. As you listen more and come to appreciate the upgrade, you can see what you like and what device fulfills all your needs. You can debate getting one device that does it all, or individual pieces to build the perfect sound signature for you.

Either way, getting a DAC is a great first step in leaning into your audiophile side and upgrading your listening. All of these factors combined are a great reason to consider investing in a DAC.

To shop for DACs and DAC/Amps, check out Audio 46’s collection.