In order to select the best digital-to-analog converter (DAC) for the application, one of the first questions designers start with is how much resolution will be required. If coarse control is desired for something such as LED current setting, an 8-bit DAC may work well. Other applications will require more resolution, or finer control. The higher the resolution, the smaller the least significant bit size. For example, a 12-bit DAC with a 5V reference has an LSB size of 1.2mV. This means, for every increase in the digital code, the analog output should increase 1.2mV. With a 16-bit DAC, every digital code increase ideally results in an increase of 76 microvolts. A smaller voltage increase allows for tighter fine tuning on whatever the DAC output is driving.

