An enhancement that reduces the digital interface rate of analog-to-digital (A/D) and digital-to-analog (D/A) converters through the use of compression and decompression is described. Improved A/D converters compressing a sampled version of an A/D converter's analog input signal in real time, thereby significantly decreasing the required bit rate of the A/D converter's digital interface. Similarly, improved D/A converters decrease the required bit rate of the D/A converter's digital interface. D/A converters include a decompressor that decompresses the D/A converter's compressed digital input in real time, prior to conversion to an analog output signal.