Perceptual normalization of digital audio signals

A method of normalizing received digital audio data includes decomposing the digital audio data into a plurality of sub-bands and applying a psycho-acoustic model to the digital audio data to generate a plurality of masking thresholds. The method further includes generating a plurality of transformation adjustment parameters based on the masking thresholds and desired transformation parameters and applying the transformation adjustment parameters to the sub-bands to generate transformed sub-bands.