You don't need to spend $1,000 to get real surround sound. These receivers cost less than $500 and still decode surround soundtracks properly, with 4K/120 gaming or Dolby Atmos, plus two worth stretching for if your budget can reach about $600.

The short answer

The best budget AV receiver is the Yamaha RX300A (~$370): Dolby Atmos, 8K/60 and 4K/120 on all four HDMI inputs, and room correction, for a first 5.1 system.

For seven channels and 5.1.2 Atmos, stretch to the Yamaha RX500A (~$600): it adds DTS:X, 4K/120 gaming on every HDMI input, and Wi-Fi streaming in one box.

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In this guide
  1. What you give up under $500
  2. Quick comparison
  3. Best budget: Yamaha RX300A
  4. Simple Denon: AVR-S570BT
  5. Worth stretching to $600
  6. Others we considered
  7. How to choose
  8. Frequently asked questions

What you get (and give up) under $500

A budget receiver still does the core job well: it decodes surround soundtracks, powers five or seven speakers, and switches your HDMI sources. To hit the price, makers cut in predictable places, and each pick below cuts in a different one:

Quick comparison

ReceiverChannelsAtmos layout4K/120 gamingWi-Fi streamingPrice
Yamaha RX300A5.23.1.2All 4 inputsNo~$370
Denon AVR-S570BT5.2NoneAll 4 inputsNo~$449
Yamaha RX500A7.25.1.2All 4 inputsYes~$600
Onkyo TX-NR51007.25.1.2YesYes~$600

The best receivers under $500

Best budget receiver~$370
Yamaha RX300A
5.2 channels · 70W · Dolby Atmos (3.1.2) · 4 HDMI 2.1 inputs, all 8K/60 and 4K/120 · Bluetooth 5.3

Yamaha's new 2026 entry model is the best receiver for a first surround system. All four HDMI inputs pass 8K/60 and 4K/120 with VRR, ALLM, and QMS, so a PS5 or Xbox Series X gets full-quality gaming, and eARC brings Dolby Atmos back from your TV's apps. It decodes Dolby Atmos for a 3.1.2 layout with two height speakers, and room correction with a setup microphone is included. Bluetooth 5.3 with multipoint keeps two phones paired at once.

Worth knowing: there's no Wi-Fi, so no AirPlay, Chromecast, or Spotify Connect. Yamaha's spec sheet lists Dolby formats but only basic DTS, with no DTS:X or DTS-HD Master Audio, so Blu-rays with those soundtracks play their standard DTS core instead. It's a new model, so long-term reviews are still thin.

Check price on Amazon Prices change often — verify current pricing on Amazon.
Best simple Denon~$449
Denon AVR-S570BT
5.2 channels · 70W · 4 HDMI 2.1 inputs, all 8K/60 and 4K/120 · eARC · Bluetooth

Denon's cheapest receiver suits a straightforward 5.1 system for movies and gaming. All four HDMI inputs handle 8K and 4K/120, eARC works with every modern TV, and Denon's on-screen setup assistant walks you through wiring and setup step by step.

Worth knowing: it doesn't decode Dolby Atmos or DTS:X, and there's no Wi-Fi or HEOS streaming. The Yamaha RX300A costs less and adds Atmos, so choose the Denon only if you find it on sale or prefer its setup assistant.

Check price on Amazon Prices change often — verify current pricing on Amazon.

Worth stretching to about $600

For roughly $100 to $250 more, you get seven channels, 4K/120 gaming, and Wi-Fi streaming in one box, with no compromise on any of the three.

Best step-up~$600
Yamaha RX500A
7.2 channels · 70W · Dolby Atmos and DTS:X (5.1.2) · 4 HDMI 2.1 inputs, all 4K/120 · Google Cast, AirPlay 2

The RX300A's seven-channel sibling adds DTS:X, a 5.1.2 Atmos layout, and Wi-Fi with Google Cast, AirPlay 2, and Spotify, TIDAL, and Qobuz Connect. If your budget can reach it, it's the best value in this guide.

Worth knowing: it's new for 2026, and it has no phono input. The older RX-V6A adds a phono input, more power, and more HDMI inputs for about $200 more; see our RX500A vs RX-V6A comparison.

Check price on Amazon Prices change often — verify current pricing on Amazon.
Best for Klipsch speakers~$600
Onkyo TX-NR5100
7.2 channels · 80W · 5.1.2 Atmos · 4 HDMI inputs, 2 outputs · Chromecast, AirPlay 2

A seven-channel alternative with Chromecast and AirPlay 2, two HDMI outputs for a TV and a projector, and Klipsch Optimize Mode, which sets the right crossovers automatically for Klipsch Reference and Reference Premiere speakers.

Worth knowing: customer reviews on Klipsch's own site run lower for this model than for the rest of the Onkyo lineup. Unless you own Klipsch speakers, the Yamaha RX500A is the safer choice at the same price.

Check price on Amazon Prices change often — verify current pricing on Amazon.

Others we considered

How to choose a budget receiver

Need speakers to go with it? Our budget home theater setup under $1,500 pairs a receiver with a matched 5.1 speaker package. For bigger budgets, see the best AV receivers at every price.

Frequently asked questions

What is the best AV receiver under $500?
The Yamaha RX300A. It decodes Dolby Atmos, passes 8K/60 and 4K/120 on all four HDMI inputs for full-quality console gaming, and includes room correction. For seven channels and a 5.1.2 Atmos layout, stretch to the Yamaha RX500A (about $600).
What is the best cheap 5.1 receiver?
The Yamaha RX300A is the best cheap 5.1 receiver, with Dolby Atmos, 4K/120 HDMI, and Bluetooth 5.3. The Denon AVR-S570BT is a simpler alternative, but it doesn't decode Dolby Atmos or DTS:X.
What is the best budget 7.2 receiver?
The Yamaha RX500A (about $600). It runs a 5.1.2 Dolby Atmos layout, decodes DTS:X, passes 4K/120 on all four HDMI inputs, and streams over Wi-Fi with Google Cast and AirPlay 2. The Onkyo TX-NR5100 costs about the same and is the better match for Klipsch speakers.
Do budget receivers support Dolby Atmos?
Some do. The Yamaha RX300A runs a 3.1.2 Atmos layout, and the Yamaha RX500A and Onkyo TX-NR5100 run 5.1.2. The Denon AVR-S570BT doesn't decode Atmos at all.
Can I use a budget receiver with a PS5 or Xbox Series X?
Yes. Every receiver in this guide (the Yamaha RX300A and RX500A, Denon AVR-S570BT, and Onkyo TX-NR5100) passes 4K/120, so you can connect a PS5 or Xbox Series X straight to the receiver.