8 Best Budget DAC of 2023

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by Isaac Marks July 28, 2023, 7:57 pm

It's a digital world we live in, and audio has not been spared. With a majority of the things we listen to stored digitally, the DAC, or digital-to-analog converter, plays an increasingly prominent role in how we experience music.

DACs are responsible for taking digital sound, stored as a chain of 0s and 1s, and turning it back into analog audio signal that can then be fed through speakers or headphones and listened to.

Like anything else, there are good DACs, and there are bad ones. A bad DAC can incorporate noise into the reproduction or produce sound that isn't accurate to the original take. A good one can breathe new life into your music and greatly enhance your listening experience.

With so much riding on your choice of DAC, it can be easy to throw money at one, hoping a higher price means better sound.

In this article, we'll show you that there are a wealth of budget DACs that provide phenomenal sound quality regardless of price point—our top pick is the Schiit MODI 3+.

We'll also detail a few things to look for in an external DAC, such as file support, inputs/outputs, resolution, and connectivity options.

Let's dig in.

Upgrading your DAC is one of the easiest ways to squeeze some better sound out of your existing setup.

In this section, we'll prove that it doesn't have to cost you an arm and a leg. Here are 15 of the best DACs across the whole budget spectrum.

The Schiit MODI 3+ is the best DAC you can buy around the $100 price range. Offering audio quality far superior to that of your computer's built-in DAC, you'll immediately notice sound opening up, with superior detail decoding and enhanced color.

The MODI 3+ supports bit depths of 16 and 24 and a sample rate between 44.1 kHz and 192 kHz, offering great flexibility and ensuring that information isn't lost in the decoding process.

The design of the MODI 3+ is simple—it looks like a sleek, silver box. There's very little in the way of controls, with just a switch for selecting input on the front.

On the back, you get a standard right/left RCA output along with coaxial, USB, and toslink inputs. The simplicity of the design allows Schiit to incorporate the higher-end AKM AK4490 DAC chip for a sound-first experience.

Schiit also includes a 5V power adapter in the box, so you can use this DAC comfortably with things like phones and tablets that benefit from lower power draw.

One important thing to note is that the MODI 3+ is just a DAC; there is no headphone output, and you'll need to couple it with an external headphone amplifier in order to actually enjoy the boost in sound quality.

Speaking of, the MODI 3+ sounds fantastic, offering a lively profile without augmenting color or boosting any specific frequency range. Of course, this will vary depending on the speakers or headphones, but you'll have a very detailed, natural base to work with.

Overall, the Schiit MODI 3+ is the best DAC you can buy in this price range, offering a no-frills design and high-quality sound.

Those with a little more money to spend—but still well within the budget range—will love what the Cambridge Audio DacMagic 200M has to offer. With a plethora of useful features, an attractive design, and excellent sound, it offers fantastic value.

The DacMagic 200M is a do-it-all DAC with support for every kind of music source and file under the sun. There are two optical and coaxial inputs each, a USB type B input, and aptX Bluetooth support. RCA and XLR outputs can be found on the back, offering greater flexibility when integrating into an existing hi-fi system.

On the front, you'll find a 6.3mm output for those listening through headphones driven by Class A/B amplification. This is great because it eliminates the need to buy an additional headphone amp.

The DacMagic 200M almost goes overboard in terms of resolution. You'll find support for up to 32-bit/768kHz audio through the USB type B input, far beyond the scope of most commercially-available music. The optical inputs support up to 24-bit/96kHz, while the coaxials top out at 24-bit/192kHz files.

In terms of performance, sound is characteristically smooth and full, with an open soundstage that keeps things from becoming muddled. There's a nice thump in the lower ranges, and trebles sparkle but never cut.

Those looking for an affordable DAC packed to the gills with features and offering premium sound should seriously consider the Cambridge Audio DacMagic 200M.

The AudioQuest DragonFly Black is a tiny, portable USB DAC offering, arguably, the easiest way to upgrade your PC's sound. Masquerading as a USB stick, the DragonFly Black totes both a DAC and headphone amp and sounds great from the get-go.

The DragonFly Black offers support for audio up to 24-bits/96kHz, and the dragonfly logo on the front of the stick lights up in different colors to indicate file size playback, so you know exactly what sort of quality to expect.

Inside, you'll find the 32-bit ESS Sabre DAC chip. Immediately noticeable is a much tighter dynamic response—differences in volume are more pronounced, with increased separation. This makes for a lively, clear sound with a good sense of balance.

There's also an airiness and added sense of openness, particularly on things like pianos and strings, giving them room to make an impact.

While occupying the form of a USB stick, the DragonFly Black can still be used on mobile devices with a micro USB/lightning to USB port adapter. Sadly, DragonFly doesn't include one of these in the box.

Those looking for the best portable DAC on a budget will love this offering from AudioQuest.

With the iFI Zen DAC V2, iFi took the already-great Zen DAC and made it better. With a new DAC chip, full MQA (master quality authenticated) decoding, faster memory, and an integrated crystal clock, the Zen DAC V2 decodes digital audio faster and more accurately.

On the front, you'll find a gain knob, power match button, true bass button, 4.4mm balanced output jack, and 6.3mm unbalanced headphone jack.

The power match button offers gain adjustment to compensate for sensitive headphones, and the true bass button offers a boost in bass presence without muddying the mids.

It's nice to see balanced audio jacks, meaning you can use the DAC in noisier environments with less chance of interference.

On the back, you'll find another balanced 4.4mm jack, a right/left RCA output, a USB-type B input, and port for external power. There's also a switch that allows you to switch output between fixed and variable, meaning the Zen DAC V2 can act as a digital preamp if you so wish.

Supporting up to 24-bit/384kHZ, the DAC V2 offers great versatility. Sound is open, smooth, and very atmospheric. It's also very balanced, with punch-yet-tight bass and sparkling highs that sit very well with the rest of the mix.

One of the best DACs in this price range, the iFi Zen DAC V2 cements its place on this list with neat features like balanced outputs, a bass booster, and power match.

One of the best desktop DACs around, the Hifiman EF400 is the answer for budget-conscious audiophiles looking for a refined, smooth standalone DAC/amp combo with superb sound.

The back is fairly basic. You get balanced XLR and RCA outputs. However, the only supported inputs are USB types B and C; no coaxial or optical support. There's also a power switch and slot.

On the front, you have a gain knob that allows you to switch between high and low gain with both oversampling and non-oversampling modes.

Next, you'll find single-ended 3.5mm and 6.3mm headphone jacks, balanced 4.4mm and XLR outputs, and a volume knob.

The Hifiman EF400 houses a Himalaya R2R DAC chip and offers full PCM decoding up to 24-bit/768kHz. It's known for its smooth sound signature; headphones with a harsher profile sound noticeably better and more natural.

Bass is punchy and dynamic but nowhere near overpowering, and mids and highs are detailed and prominent.

One of the nicest things about this DAC is how easy it is to use—often described as a "pure DAC," you just plug it into your digital source, pull up your audio files, and plug your headphones in. That's it.

The thing is built like a tank and looks good to boot—the icing on the cake. If you're looking for a no-nonsense desktop DAC with silky-smooth sound, give the Hifiman EF400 a look.

For hi-fi enthusiasts looking for a budget DAC to integrate into their home audio setup, the EverSolo DAC-Z6 is a top choice.

The DAC-Z6 is a fully-featured DAC/amp combo powered with dual ES9068 DAC chips and six RT 6863 OP amps. The DAC also supports Bluetooth 5.0 playback for maximum-fidelity sound without the wires.

On the front, you'll find a display that shows system settings, audio input selection, a VU meter, and audio info. The pressable volume knob works to interact with these settings. Overall, the UI is easy to use and offers some convenient customization options.

On the back, you'll find L/R XLR and RCA outs, coaxial, USB-B, and USB-C inputs, and a power slot and switch. The XLR and RCA can output simultaneously, which is great for larger hi-fi setups and speaker configurations.

The DAC-Z6 can fully decode MQA, DSD512, and PCM files up to 32-bit/768kHz. A mobile app lets you tweak all of the DACs settings a little more easily and acts as a mobile remote.

There are also three sets of digital filters with different sound profiles, helping you quickly tailor the DAC to your use case.

Overall, the EverSolo DAC-Z6 offers great sound and convenience in a sleek aluminum chassis with plenty of outputs. If you're looking for a DAC upgrade in your hi-fi setup, this one is worth a look.

If you're looking for a budget DAC that also functions as a portable headphone amp and Bluetooth receiver, the FiiO BTR5-384K is the pick for you.

The thing is feature-packed: EQ-customizable Bluetooth audio, a 2.5mm balanced output jack, a customizable app, NFC pairing, and a surprisingly powerful amplifier.

It all sits in an unobtrusive, sleek design, with a glass face housing a screen displaying things like battery life, Bluetooth codec, volume level, decoding resolution, and whether it's decoding an MQA file.

It's a great DAC to use with power-hungry headphones on the go. The 3.5mm audio headphone jack provides 80 mW and 1.6V, while the balanced jack ups that to 240 mW and 2.8V at 32ohm load. That's plenty of power.

The 3.5mm jack has a recommended impedance limit of 100 ohms, while the balanced jack is rated up to 150 ohms.

The BTR5 supports up to 32-bit depth and 384kHz sample rates and works with MQA tracks on services like Tidal. Sound quality is very good, with noticeable improvement over in-built smartphone DACs.

The FiiO FiiO BTR5-384K is one of the best portable DACs out there for those on a budget, integrating good sound with Bluetooth, app support, and a nice design.

Gamers need good sound, too—and the Creative Sound Blaster X4 is here to give it to them. With a number of features specific to enhancing the gaming experience, and support for the likes of Playstation and Xbox consoles, the X4 is the perfect hi-fi gaming companion.

On the front, you'll find both a headphone and microphone port. The added auto-mute and two-way noise cancellation features help enhance in-game communication.

On the back, you'll find surround-sound line-out jacks (front, side, rear, c/sub), line-in, optical line-out, and a USB-C port for power and audio.

There's also a button to enable balanced audio, direct microphone mute, and something called "SXFI Battle Mode," which increases depth, detail, and audio cues within games.

The Sound Blaster X4 comes with a variety of presets to quickly tailor sound to whatever you're using the DAC for, including games, movies, music, and more.

If you're not into presets, the included software gives you the ability to tweak everything in greater detail.

There's a 10-band EQ, a vocal equalizer, and a number of other gaming-specific features like virtual surround sound, battle mode, and scout mode—which enhances situational awareness and helps you detect the movements of your foes.

There's an integrated headphone amplifier, so no need for any extras, and the DAC supports audio files up to 24-bit/192 kHz. While there's no MQA support, and resolution could be better, sound is still very good.

The sheer number of customization options, gaming-related features, and great sound quality make the Sound Blaster X4 hard to beat for gamers looking to up their sound.

When shopping for a budget DAC, there are a few things to take into consideration. Understanding these can help you better make the right choice for your needs.

In this section, we'll outline what to look for, including elements that impact sound quality, portability, connectivity options, and amplification.

The first thing to consider when shopping for a budget DAC is sound quality. There are a number of things that factor into sound quality.

The first is resolution. Measured in bit depth, resolution represents a DAC's ability to accurately reproduce and convert digital audio signals into analog audio signals. The higher the bit depth, the greater the resolution and the more detail the DAC can render.

Additionally, if a DAC only supports audio up to 16 bits, it won't be able to properly decode a 24-bit audio file.

The sample rate refers to the number of samples taken and decoded per second. Sample rate is usually measured in kHz, with a higher sample rate generally associated with higher-quality reproduction.

Common sampling rates used in audio production and playback include 44.1 kHz (CD quality), 48 kHz (standard for digital video), 96 kHz, and 192 kHz (for high-resolution audio).

If the DACs maximum sample rate is lower than the audio being decoded, it can be downsampled, which can result in lower-quality playback.

The signal-to-noise ratio (SNR) is another crucial thing to consider. This refers to the level of unwanted noise in an audio signal.

Measured in dB, a higher number represents better performance because it shows that the desired audio signal is more prominent than the noise introduced during the digital-to-analog conversion process.

This boils down to desktop vs. portable. If you want a DAC you can toss in your work bag and use on the go, a small portable DAC with integrated amplification is the best way to go.

Portable DACs are more self-contained, and while they offer greater listening freedom, they often come with fewer features and are harder to integrate into home audio setups.

Desktop DACs usually offer more in the way of features and input options, making them much better choices for home audio systems. However, unlike portable DACs, they don't necessarily come with amplification, and they are much bulkier.

Connectivity options are important to consider because your DAC has to be compatible with your chosen input and output methods in order for it to integrate with your system. When looking at connectivity options, first decide what you'll be using your DAC with.

If you're looking to get better sound through a pair of headphones on your computer or smartphone, a DAC with a basic USB input and 3.5mm output jack will be fine.

However, if you want to integrate into a more complicated hi-fi system, more audio output jacks, XLR and RCA jacks, and balanced outputs are more suitable. You'll also want to look for things like coaxial and toslink inputs.

External power is another consideration—powering your DAC can reduce drain on input devices and drive sound more powerfully.

You can have the best DAC in the world, but without a headphone amp or other form of dedicated amplification, you won't be able to enjoy the sound it decodes.

Buying a DAC with an integrated form of amplification can save you money and makes setting up your system easier as there's one less part to hook up. It also saves you the time of finding an amp you like.

DAC/amp combos are also more portable; you only have to carry one thing with you. For these reasons, we recommend DACs with a headphone amp for those on a budget and those looking for betters sound on the go.

However, buying a standalone DAC and amp separately gives you greater flexibility—you can mix and match different DAC/amp combos and upgrade each separately. Additionally, if one breaks, you won't have to replace both.

Yes, an external DAC will provide great audio quality, and you don't have to pay a premium to reap the benefits. Built-in DACs are often built with budget and size constraints in mind and are only meant to provide adequate audio performance.

A dedicated DAC, in addition to providing higher-quality decoding, can accommodate more audio format files, reduce digital audio errors, and connect to more analog outputs.

Yes, when used in combination with a quality headphone amp, a DAC can improve the quality of the sound you hear through your headphones. However, if your headphones just simply sound bad, there's not much a DAC will do to improve the sound.

It depends on the DAC you purchase. Some DACs come with headphone amps built in, while others require some form of external amplification.

Additionally, you'll need an audio source, input and output connection cables, and speakers/headphones.

It depends on the kind of DAC. While some draw adequate power through USB from the source connection, others require some form of external power.

Others simply function better with external power, and external power can drastically reduce power drain from your audio source. The occasional portable DAC even operated on battery.

Upgrading your DAC doesn't have to cost a fortune; there are plenty of fantastic-quality options available for a steal. Just be sure to keep in mind things like connectivity options, amplification, resolution, and portability when making your pick.

Our top choice is the Schiit MODI 3+. It provides the best balance of quality and price. However, if you're looking for a DAC with more connectivity options, built-in amplification, and even higher resolution, there's none better than the Cambridge Audio DacMagic 200M.

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