5 Best DACs Under $500 in 2024

Affordable and high-quality DACs under $500

DAC is an abbreviation for a digital-to-analog converter. This device allows you to transform digital signals into an analog format. As a result, you can stream music and other content from digital sources to analog output devices. Unfortunately, the cost of DAC is quite high and many people cannot afford to spend so much money.

However, we decided to learn this topic in detail and find several decent options in terms of price-quality correlation. We tested about forty models and narrowed the choice down to the top 7 options. Read on and find the best DAC under 500 USD for you.

Using DACs, you can convert digital audio to analog formats to get sound perceivable by our ears. Let's take a closer look at these wonderful devices to understand which DAC is best for you.

Inputs: RCA Line In, USB or S/PDIF | Outputs: RCA, S/PDIF | Bluetooth: No | Max sample rate support: 24 bit / 192 kHz

Soundavo HP-DAC1, the world's first digital to analog converters, is a revolutionary new high-performance digital to analog converter. Soundavo HP-DAC1 gives you, the user, the ability to convert the analog signal into digital using one easy to operate interface. Soundavo's unique High-Performance Analog To Digital (HP-DAC) converts voice signals from tape into digital using the patented Waveform Control Technology that is incorporated in each chip of the device.

Powered SpeakersThe HP-DAC1 is equipped with four high-power 12-inch subwoofers that are connected to the front of the audio system with a precision-tuned dual amplifier configuration. An optical audio input lets you plug in your laptop or other digital source for listening to your favorite music. The built-in speakers are perfect for monitoring and controlling your home theatre system. A high-quality digital output allows you to send the sound from your speakers to an appropriate device for playing back on your stereo system.

Inputs: USB, COAX, Optical | Outputs: RCA | Bluetooth: Yes | Max sample rate support: 32bit/768kHz

One of the unique advantages that the SMSL M300 MKII has compared to the competition is its RCA connection. RCA connections have been around for decades and have proven themselves as being highly compatible and reliable, however if you compare the RCA signal to the latest mobile radio providers like Vodafone, it may seem a little dated. By having the RCA connection you can ensure that if you move your equipment from one location to another, whether that is home to work or from club to club, you will not need to worry that any information you transmit will not be transmitted clear.

The SMSL M300 MKII has the ability to transmit over 300MB/s and is capable of doing so in both voice and data. It also comes with a compact digital video recorder, a micro SD card, an RCA cable, a pair of power adapter and an external rechargeable battery. The RCA cables are useful as they connect the electronic equipment together and make it easier to transfer files between different systems when needed.

Inputs: Coaxial, Optical, Analog line-in | Outputs: Unbalanced 3.5, Balanced 2.5, TRRS | Bluetooth: Yes | Max sample rate support: 32 bit/768kHz

This top-of-the-range digital music player is considered by many to be the most technologically advanced satellite radio product available on the market today. The Q5S has a tasteful all-metal body and a stylish, compact design that makes it perfect for use as a tabletop receiver or docking station. Its powerful amplifier section consists of five digitally-functional equalizer channels, a variable-frequency drive system with subwoofer output enhancement, and phase-shift linear control. What is also impressive about this receiver is the fact that it uses the latest Excite Digital Technology, which AKM claims will deliver premium sound quality.

The FiiO Q5S's remote control allows you to program even the most sophisticated controls and features into its remote-controlled program menu. When used with your laptop, the FiiO Q5S is a powerful workhorse that can be used for both handsets without difficulty.

Inputs: USB, TSR, 1/8" mono electret | Outputs: micro-USB, TRS, 1/8" stereo | Bluetooth: No | Max sample rate support: 32bit/192kHz

Schiit has come out with the latest product to come from their long-time companion, the Sennheiser PXC 250. This time around the Schiit Fulla 3 has a built in sound card that allows it to function as a high-end PC audio interface. This is great news for many users that might not have the budget for an entirely separate sound card or don't have the space to mount one on their computer. However, there are some features that this new model brings with it that make it stand out among the competition.

Overall, the Schiit Fulla 3 does feel like a good mid-range amplifier. However, if you are looking for a little bit more power and tone, then there are other models to consider, like the Sennheiser PXC 250. Or if you are looking to connect your sound board directly to your computer, then the only other option left for you is to go with the Schiit Aq3. Either way, you should always remember that the amount of power that you need, as well as how much power you need, will ultimately depend on what you will be using your amp for.

Inputs: USB | Outputs: Balanced 4.4, Single-Ended S-Balanced 3.5 | Bluetooth: No | Max sample rate support: 32bit/384kHz

The iFi Hip-Dac is a simple, sleek and sophisticated design that has all the key features that you'd expect from an iFi product, with some added extras thrown in. This little number has a pair of headphone jacks, a pair of RCA inputs, a mic input, a volume control with an auto-revolving bass port, a line input, a clock input, an auto shut off switch, and USB hook up for connecting to computers. This is a truly versatile little device.

It's not so much the utility features that iFi Hip-Dac Portable excels at, but the sheer amount of choice that it offers when it comes to its models and add-ons. Available in two flavours - one with an audio preamp and one without - this little card packs a punch when it comes to functionality. The audio preamp lets you use more than one input at a time without having to juggle audio inputs and buttons, allowing you to keep all your controls at your fingertips, saving you both time and frustration.

Think about where and how you are going to use the device. If you're looking for the best DAC under 500 bucks for listening to music on the go, then size is critical. In this case, opt for a portable model. If you are buying a device for home use, then pay attention to other capabilities and functions.

All models on our list deliver hi-res audio starting at 192kH/24-bit. At the same time, the files are not compressed and they retain the original quality. Those, who use various audiophile streaming services (e.g. TIDAL) can enjoy the improvement of audio fidelity. You can also use upsampling technology to improve the audio qualities of the compressed files.

If you need to connect a DAC to a computer or mobile device, you should whether it comes with USB ports. You may also find options with red and white RCA inputs for connecting a CD player, tablet, TV set, or smartphone. A headphone amplifier is an integrated component of some DACs. If your DAC lacks this element, you should buy it additionally.

When shopping for the best DAC under 500 USD, you may come across devices that don’t have an amplifier that boosts sound with the help of speakers or earphones. That means they don’t power the speaker or headset. To fix this drawback, modern manufacturers include an amplifier in the DAC design. To get the desired sound quality, you only need to plug it into the headphone jack.