A low-dropout (LDO) regulator holds a steady output voltage by continuously adjusting the resistance of a pass transistor connected between the raw input rail and the regulated output rail. An internal error amplifier compares a scaled-down copy of VOUT against a fixed reference voltage and drives the pass device's gate to correct any difference — this is the "iris valve" you see pulsing between the input and output bus bars.
"Low-dropout" simply means the minimum VIN − VOUT headroom needed for regulation is small — often under 0.3V — versus 2V or more for older linear regulators like the 7805. That extra headroom is entirely wasted as heat, so battery-powered designs favour LDOs with the smallest dropout spec that still fits the budget.
A 3D pass-transistor circuit shows how an LDO regulator holds a steady output voltage by absorbing excess input voltage as heat, and what happens when the input gets too close to the setpoint.
The glowing iris valve represents the pass transistor's effective resistance, opening as the input-to-output voltage gap shrinks. Once the gap drops below the dropout spec, regulation is lost and the output starts tracking the input directly.
Sweep input voltage and load current to watch the output voltage, dropout margin, dissipated power and junction temperature respond live. Change the output setpoint and dropout spec to compare regulator designs.
All of the voltage an LDO "regulates away" becomes heat: P = (VIN − VOUT) × ILOAD. That's why linear regulators are simple and quiet but far less efficient than switching converters for large voltage drops.