When wire is moved within a magnetic field a current is generated in the wire. Using this induction principle, the dynamic microphone uses a wire coil, magnet, and a thin diaphragm to capture the audio signal. The diaphragm is attached to the coil. When wire is moved within a magnetic field a current is generated in the wire. Using this induction principle, the dynamic microphone uses a wire coil, magnet, and a thin diaphragm to capture the audio signal.

The diaphragm is attached to the coil. When the diaphragm vibrates in response to incoming sound waves, the coil moves backwards and forwards past the magnet. This creates an electrical current in the coil, which is channeled from the microphone along wires.