Reviewed September 2026. Most people, most of the time, don't need an external DAC. The digital-to-analog converter built into your laptop, your phone, or your powered speakers is competent, and if what you're hearing now sounds clean, no hiss, no hum, no interference when the screen refreshes, a new box will not transform it. A DAC earns its place in three situations: your built-in output is audibly noisy, you need a proper line-level signal to feed an amp or powered speakers, or you're building a desktop system and want a source component that isn't your computer's headphone jack. If none of that describes you, buy nothing. Put the money toward headphones or speakers instead, that's where the real differences live.
If one of those three situations does describe you, here's what to buy. One to start with, one to stretch for, and nothing worth buying in between.
| Pick | Where it fits | What it gives you | What it costs you |
|---|---|---|---|
| Schiit Modi 5, $149 | Start here | USB, optical and coaxial in, RCA out, power over the same USB cable, a footprint about the size of a paperback | No remote, no display, no filter menu |
| Topping E30 II, $149 | The alternative | The same job, plus a remote and a small display | The choice comes down to looks and the remote |
| RME ADI-2 DAC FS, $1,299 | The one to stretch for | A real parametric EQ, adaptive loudness, and a headphone output strong enough that plenty of owners never buy an amp | Density. A screen, menus, and a manual as thick as a paperback |
Start here: Schiit Modi 5, $149
The Schiit Modi 5 is the one we hand people first because it does exactly the job and nothing else: USB, optical and coaxial inputs, RCA outputs, power over the same USB cable, a footprint about the size of a paperback. Plug your computer into one end, your amp or powered speakers into the other, and stop thinking about digital-to-analog conversion.
What you give up at $149 is convenience, not sound. There's no remote, no display, no filter menu to second-guess. It converts cleanly at levels below anything you can hear, and Schiit has been refining this little box for over a decade. If your system ever feels limited, the limit is almost certainly somewhere other than the Modi.
Worth knowing: the Topping E30 II ($149) does the same job for about the same money and adds a remote and a small display. The choice between it and the Modi comes down to stock, looks, and whether the remote matters to you.
The $300 to $800 middle
The $300 to $800 DAC market is crowded with boxes that measure the same as the Modi and differ mostly in casework and marketing. Most people should buy the Modi 5 and stop, and the few who shouldn't will recognize themselves in the next section.
The one to stretch for: RME ADI-2 DAC FS, $1,299
The RME ADI-2 DAC FS is where the desktop DAC conversation ends for most people. Built in Germany, it measures as well as anything at any price, and its two headline features, a real parametric EQ and adaptive loudness, are working tools, not spec-sheet decoration. The headphone output is strong enough that plenty of owners never buy a separate amp at all, which changes the math on the total system cost.
The cost is density. There's a screen, there are menus, and the manual is as thick as a paperback. RME builds for studio engineers, and it shows in every corner of this thing. If you want set-and-forget, this is more than you need, buy the Modi 5 and spend the difference on music. If you want the one digital source component that will still be current in ten years, it's this.
Who should buy something else
A desktop DAC isn't the answer for everyone. Skip both picks, and in some cases the whole category, if any of these fit:
- You listen mostly on the go. A desktop box does nothing for you on a train. A small portable DAC that runs off your phone is the right shape for that problem, different guide, different picks.
- You listen to records. A turntable is analog end to end. There's no digital signal to convert, so no DAC will touch what you hear. Put the money toward a better cartridge or phono preamp instead.
- You need a headphone amp anyway. If your headphones want more power than a laptop jack provides and you don't own an amp yet, a combined DAC/amp in one box usually makes more sense than buying two separate components at the same budget.
- Your current setup already sounds clean. This is most people. If there's no noise, no hum, and nothing obviously missing, there's nothing here to fix.
How to choose, in one minute
If you're deciding between DACs, decide on plumbing, not sound. Check the inputs. USB covers a computer, optical matters if a TV or game console is in the chain. Check the outputs. RCA feeds almost anything, and balanced outputs only matter if the rest of your chain is balanced. And think about control: a remote earns its keep when the DAC sets the volume for powered speakers across the room.
Diminishing returns arrive early and hard in this category. The measurable difference between a competent $149 DAC and a $1,299 one is smaller than the audible difference between any two pairs of headphones you might own. Buy the RME for its tools, its headphone output, and its build, not because the Modi is holding you back. It isn't.
Both picks rest on published measurement, on the feature set each box is built around, and on reviewer consensus that is unusually broad and consistent.

Third floor at 215 East Lewis Street in Livingston. Bring your own gear in if you like. Write to hello@sonictempleaudio.com and we will find an hour.
Liner Notes
One letter when there is something worth saying. Your address goes nowhere else.









