Best DACs for 2025
How to get the best sound from your digital audio sources
In this article: We'll look at what a DAC is, and how it makes your digital music sound better. And then I'll recommend a few that stand out from the crowd, to help you get started shopping...
- Best budget DAC — iFi Audio hip-dac3
- Best portable DAC — AudioQuest DragonFly Cobalt
- Most versatile DAC — iFi Audio NEO iDSD2
- Best compact desktop DAC — iFi Audio Zen DAC V2
- Best desktop DAC — Cambridge Audio DacMagic200M
- Best high-performance DAC — HiFi Rose RD160
Digital music is all the rage nowadays. I know when I want to check a new album out all I have to do is fire up TIDAL, search for it, and stream away. That's much simpler than scouring record stores to find a physical copy of the album. If you've found yourself in that same position you might be thinking: "How do I make sure I'm getting the best sound possible when I'm playing digital music?"
That's where a good DAC comes in handy.
Digital-to-analog converters take the 1s and 0s of digital music files and turn them into an analog signal
Okay, so what is a DAC?
DACs, or Digital-to-analog converters, convert digital data into an analog audio signal. However, not all DACs are built for sound quality. Your smartphone, tablet, and computer all have DACs built into them. Those DACs are more rudimentary, however, serving only to handle the conversion process and nothing else.
A dedicated outboard DAC is what you'll need to bring your music to life; that is especially true for high-resolution tracks. Those are files that have a higher-than-CD-quality bit depth and sample rate. Outboard DACs support higher bit-depths and sampling frequencies than most "stock" DACs. That greatly improves the detail, clarity, and overall soundstage of your music.
There are many different flavors and shapes of DACs. Some are small and portable, others are large and are more geared towards home setups. In a sea so vast and deep it can be challenging picking the right DAC for your system. Here are my top picks for 2025.
Best budget DAC — iFi Audio hip-dac3
When I first saw the original hip-dac I had to do a double take. For a second, I thought the trainers from iFi had brought in an old hip flask they'd painted for display. Upon closer inspection, I found that they'd brought in a potent portable DAC that offered a whole host of handy features. Since then, iFi has released a second, and now a third iteration: the hip-dac3.
The hip-dac3 is, like its predecessors, a lightweight machine, coming in just over 4.5 ounces. Its light weight coupled with its slim profile makes it easy to handle and cart around while you're out and about.
It is completely self-powered and has an 12-hour battery life so you'll have ample time to listen to your favorite tunes throughout the day. It uses a 32-bit Burr-Brown "True Native" chip to handle the digital-to-analog conversion, and also features a 16-core XMOS processor that was optimized by iFi's engineers to deliver the best sound quality possible. As an added bonus, it can also render MQA — a handy feature if you stream from TIDAL
The hip-dac3 boasts a solid headphone amplifier, too. The headphone amp plays well with lower-impedance headphones. On that note: it has built-in PowerMatch technology that can be turned on or off to match different headphone and earbud types. Keep it off if you'll be using sensitive In Ear Monitors (IEMs for short) or flip it on if you're using headphones with a low efficiency to get the most out of the amp section.
Connections
- dual USB-C inputs — one for charging and one for connecting a PC, smartphone, and other mobile devices
- unbalanced 3.5mm headphone output
- balanced 4.4mm headphone output
Best portable DAC — AudioQuest DragonFly Cobalt
The DragonFly series of DACs from Audioquest has always held a special place in my heart. The Cobalt is a tiny DAC — roughly the same size as a flash drive — and it packs quite a wallop.
When I demoed the Cobalt, I could tell it was in a whole 'nother league compared to the other DragonFly DACs. The soundstage was considerably wider. The vocals had a better, more frontal presence, and the mids seemed tighter. The bass was more tightly controlled and less prone to drown-ing out the mids, too. That cemented the DragonFly Cobalt as my pick for a portable DAC.
The 32-bit ESS Sabre ES9038Q2M chip it uses is one of the best out there for the cash. It doesn't utilize an internal battery — rather, it draws its power from your smartphone. Thankfully, the 9038 chip is very efficient so it won't drain your battery too quickly.
The Cobalt plugs into your smartphone via one of the included adapters, making connection a breeze. You could also plug it into your PC using the standard Type A USB connector built onto the unit itself. The headphone amplifier section is surprisingly powerful.
I tried the Cobalt out with a set of Sennheiser HD660 S over-ears, and the two paired extremely well together. It can handle all but the most inefficient and high-impedance headphones.
Connections
- Type A USB input for connecting PC, smartphone, and other mobile devices
- unbalanced 3.5mm headphone output
Budget-friendly alternative
Audioengine's DAC3 is another potent portable DAC that delivers exceptional sound quality. It uses a USB Type-C connector and resolves details in your music with authority.
Most versatile DAC — iFi Audio NEO iDSD 2
British hi-fi legend iFi brings another stellar piece of equipment to this list with their NEO iDSD 2. This versatile desktop DAC can serve as a dedicated DAC for your favorite headphones or as a preamp for your home stereo system. It's also one of the first digital-to-analog converters to support aptX Lossless, which lets you stream over Bluetooth at CD quality.
The NEO iDSD 2 features a four-channel 32-bit Burr-Brown "True Native" DAC chip on the inside that allows for separate signal pathways for the left and right channels. That, in turn, gives you a more accurate, more detailed stereo image. The sound is intricate, with a good amount of soundstage depth and a high level of clarity.
The rear panel features a pair of unbalanced RCA preamp outputs, plus a pair of balanced stereo XLR outputs. You can select if they're fixed or variable, making it an ideal choice for a two-channel stereo system.
Connections
- USB, coaxial, and optical digital input(standard Toslink to mini optical adapter included)
- stereo unbalanced RCA and balanced XLR preamp outputs with selectable fixed/variable level
- unbalanced ¼” headphone output (3.5mm mini to ¼” adapter included); balanced 4.4mm headphone output
Best compact desktop DAC — iFi Audio Zen DAC V2
iFi Audio's Zen DAC V2 is a compact desktop audio powerhouse. Its sleek, modern design makes it an eye-catching piece that should integrate well in any desktop setup.
It has ample processing, thanks to its premium 32-bit Burr-Brown "True Native" digital-to-analog converter chip. The chip supports PCM and DXD up to 32-bit/384kHz, as well as DSD up to DSD256, and it can fully decode MQA files. This uncompromising DAC also features iFi's GMT femto-precision clock and 16-core XMOS processor, which help keep the sound clear and articulate while also taking out digital timing errors.
Connections
- USB (Type B) input for connection to a computer
- one pair of unbalanced RCA outputs
- unbalanced 1/4" headphone output; balanced 4.4mm headphone output
Best desktop DAC — Cambridge Audio DacMagic 200M
An elegant successor to the legendary DacMagic Plus, the DacMagic 200M brings a bit more to the table than its predecessor. Granted, the DacMagic Plus stole my heart the first time I got to play around with it — I'd used the same set of HD660s from Sennheiser that I mentioned earlier and the results were astonishing. The DacMagic 200M takes that same kind of performance and cranks it up to eleven.
Cambridge decided to switch things up a bit and employ twin ESS Sabre 9028Q2M DAC chips in this iteration. Those 9028Q2M DAC chips don’t mess around! They offer a cleaner, punchier sound overall compared to other DAC chips.
They also decided to beef up the headphone amp section, this time utilizing a high-performance Class A/B amplifier with a very low noise floor. It can handle inefficient headphones or higher-impedance headphones with ease — the output is pretty stout.
No need to grab an external Bluetooth receiver if you want to wirelessly stream your tunes. Unlike its predecessor, the DacMagic 200M has Bluetooth 4.2 built in with aptX support. It's also the first Cambridge Audio product that has full MQA support, serving both as a renderer and a decoder.
It'll take up a bit more space than the DacMagic 100, but the audio upgrades are significant. It can integrate into most home systems with just a couple of cables. You can connect it up to a CD player, a home stereo, or PC thanks to the various inputs and outputs on the back.
Connections
- 2 optical digital inputs
- 2 coaxial digital inputs
- 1 USB Type B input
- balanced stereo XLR outputs
- unbalanced RCA stereo outputs
- 1/4" front-panel headphone output
Best high-performance DAC — HiFi Rose RD160
Topping off our list is the powerful HiFi Rose RD160. This luxurious digital-to-analog converter is the debut DAC from HiFi Rose, and what a debut it is.
The RD160 packs a lot of audiophile goodness inside its machined aluminum chassis. It features two audiophile-grade AKM DAC modules. An AK4191 chip is the first stage, taking the incoming signal and preparing it for conversion to analog. The signal then hits an AK4499EX digital-to-analog converter chip that translates the digital 1s and 0s into an analog signal to be passed along to your gear.
There are three(!) reference-quality linear power supplies inside that keep noise and cross-channel interference to a minimum. On top of that, there are two J-FET input op amps and HiFi Rose's own Rose NRA™ filtering system. Together, they practically eliminate distortion while providing a wide, consistent frequency response and extended dynamic range.
The RD160's stealthy front panel shows which source is selected, upsampling and filter options, volume, and more. Its rear panel has plenty of connections for integrating it into the other components in your setup.
Connections
- coaxial digital RCA and BNC inputs
- optical digital input
- USB Type-B audio input
- balanced AES/EBU digital XLR input
- AES/EBU XLR input
- external master clock input
- pair of unbalanced stereo RCA outputs
- pair of balanced stereo XLR outputs
Any Questions?
Check out our DAC buying guide for the full scoop on DACs. Also, don’t hesitate to reach out to any of our advisors. They’re extremely knowledgeable and get hands-on with a lot of the gear we carry. I should know — I used to be one myself!
Popular questions customers ask
DAC stands for “digital-to-analog converter”. The DAC chip found inside external DACs is what converts the incoming digital audio signals into an analog one. DACs will always have some form of digital input and analog output.
The incoming signal enters the DAC through one of its digital inputs. The signal then hits the actual digital-to-analog converter chip, at which point the digital 1s and 0s are converted into an analog signal. The signal then goes through the analog circuitry to the DAC’s analog outputs (like a 3.5mm headphone jack or unbalanced RCAs).
While you might not need a DAC, getting one is a great idea. DACs help you get the most out of your music files by cleaning the off the digital “grime”. Plus, most DACs have headphone amplifiers that provide clean power to headphones.
DACs are great for improving the sound of digital files. They help give your music more clarity, depth, and imaging. External DACs also can sport audiophile-grade headphone amplifiers, giving your favorite pair of cans all the clean power they need to sound their best.
Most external DACs feature built-in headphone amplifiers. These amplifiers have specialized circuitry for maximum performance and minimum distortion. They can also drive most headphones (including those with high impedances). Just check the specs to make sure the DAC you’re looking at will work for your headphones.
Daniel F from San Diego
Posted on 11/13/2023
I did love the hip dac 2, but the hip dac 3 is out now! With up to 32bit/384kHz decoding, iFi's fantastic ieMatch, and the best upgrade of all, usb-c data input!!! No need for the old, annoying, USB A female OTG connection on the 2. Also, the 3 seems to be playing Dolby Atmos files from Amazon music at the full 32/384 and it sounds like bliss on my 64audio Nio's ???? I'm a little upset that they didn't advertise it in advance since I bought my hd2 at the start of June, and I definitely would have held off if I knew the 3 was coming, but now I can pawn it off on a friend and send them down the rabbit hole.
Mark Gallagher from Buffalo NY
Posted on 3/7/2022
This may sound like a silly question, if i use a DAC and listen to wireless earbuds or headphones, is the signal compressed because it's using Bluetooth? Am I defeating the purpose of an upgraded DAC?
Gilbert Moreno from Bremerton
Posted on 11/1/2021
How does this work with vintage equipment ? Particularly Bose products. I'm mainly interested in portable for the QC-35 ll. But would also like to use it on the vintage equipment. Thx for your time.
Mike from Northern Virginia
Posted on 9/2/2021
With the DACMagic 200M, if I'm not using Bluetooth (it's not selected as the source), is Bluetooth turned off? I don't like having sources of RF on if I'm not using them. Thanks.
Rosa from san francisco, CA
Posted on 7/9/2021
Hi, hope you can advise, I mostly listen to spoken word, so I would like to enhance vocals. Also some audiobooks have interesting music and or sound effects interwoven. A DAC recommendation would be appreciated. I do tend to cast the sounds to other devices that have Air Play, but of course not when I have my headphones on. I do have a no name DAC that I purchased from eBay over 10 yrs ago. The vendor no longer builds them, but I remember being amazed at the sound when piped through it to my wired headphones.
Marc
Posted on 3/18/2021
How does the Dragonfly DAC or ifi audio works with the online controls and mic in headphones? Will they still works if I get a phone call or do I have to remove the dac to use my headphone with calls
Bill from Atlanta, GA
Posted on 3/3/2021
Is it better to connect to the AVR component via Bluetooth or coax cable when using an I-Pad for the music source? Or should we use the dragonfly and connect through the USB?
Archer A. from Crutchfield
on 3/3/2021
Ed from Boynton Beach, FL.
Posted on 3/3/2021
Which DA is best for these applications? 1. Spotify on PC... Nano USB to Amazon Bluetooth receiver cabled to a legacy Nakamicki receiver -> Polk SDA Speakers? 2. Spotify on PC to SONOS Connect cabled to legacy Yamaha 2020 receiver -> to Vanderstein 2s ? Thanks !!
Greg from Ashland
Posted on 2/13/2021
I've been using a Dragonfly DAC with my iPhone in my car, connected via AUX. Am I damaging my audio system in any way?
Archer A. from Crutchfield
on 2/24/2021