Editing Digital-to-analog converter (section)

==Performance==
The most important characteristics of a DAC are:{{cn|date=August 2016}}
;Resolution: The number of possible output levels the DAC is designed to reproduce. This is usually stated as the number of [[bit]]s it uses, which is the [[binary logarithm]] of the number of levels. For instance, a 1-bit DAC is designed to reproduce 2 (2<sup>1</sup>) levels while an 8-bit DAC is designed for 256 (2<sup>8</sup>) levels. Resolution is related to the [[effective number of bits]] which is a measurement of the actual resolution attained by the DAC. Resolution determines [[color depth]] in video applications and [[audio bit depth]] in audio applications.
;Maximum [[sampling rate]]: The maximum speed at which the DACs circuitry can operate and still produce correct output. The [[Nyquist–Shannon sampling theorem]] defines a relationship between this and the [[Bandwidth (signal processing)|bandwidth]] of the sampled signal.
;[[Monotonicity]]: The ability of a DAC's analog output to move only in the direction that the digital input moves (i.e., if the input increases, the output doesn't dip before asserting the correct output.) This characteristic is very important for DACs used as a low-frequency signal source or as a digitally programmable trim element.{{cn|reason=Not a common specification IME. Bad behavior in this respect will be amply demonstrated as distortion.|date=August 2019}}
;[[Total harmonic distortion]] and noise (THD+N): A measurement of the distortion and noise introduced to the signal by the DAC. It is expressed as a percentage of the total power of unwanted [[harmonic distortion]] and noise that accompanies the desired signal.
;[[Dynamic range]]: A measurement of the difference between the largest and smallest signals the DAC can reproduce expressed in [[decibel]]s. This is usually related to resolution and [[noise floor]].

Other measurements, such as [[phase distortion]] and [[jitter]], can also be very important for some applications, some of which (e.g. wireless data transmission, composite video) may even ''rely'' on accurate production of phase-adjusted signals.

Non-linear PCM encodings (A-law / μ-law, ADPCM, NICAM) attempt to improve their effective dynamic ranges by using logarithmic step sizes between the output signal strengths represented by each data bit. This trades greater quantization distortion of loud signals for better performance of quiet signals.