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When capturing a screen recording on your Mac, Loopback can help you make sure the exact audio you want is included. To do this, you'll make a Loopback virtual audio device that includes audio from only the specific applications and devices you wish to record. The following example should help you get started.
To begin, open Loopback and click on the (+) New Virtual Device button in the bottom left corner of the Loopback window. This will create a new Loopback device. You can name it anything you like. This example uses the default name, “Loopback Audio".
Now, we need to get audio into this device. To begin, you'll likely wish to include your own voice from your mic. Click on the (+) button at the top of the Sources column, then select your microphone.
Next, we'll add application sources. Do this by clicking the (+) button at the top of Sources column, then choose your desired applications. Audio output from the applications you add will be picked up by the Loopback device.
Here, you can see that we've added Safari, as well as our soundboard app Farrago.
By default, when a Loopback device is in use, Loopback mutes audio output from any application sources. In that configuration, audio from the source applications won't be heard. However, you may wish to to hear audio from some or all of your application sources while you record your screen. To do this, click the source's Options control to expand its settings, then uncheck the Mute when capturing checkbox. This will allow the app's audio to be heard through your Mac's default output device while Loopback is capturing it.
Alternately, if you want to hear all the audio being captured by your Loopback device, you can do so with a Monitor. Click on the (+) button at the top of the Monitors column, then choose an output device to use.
Once your Loopback device is properly configured, you'll set it as the input for your screen recording software. In that configuration, the screen recorder will receive audio from whatever sources you've set in the Loopback device.
Once your Loopback device is configured, and you've selected it in the screen recording software, you're ready to go. Begin recording in the screen recording app, then start talking and using your applications as needed for your demonstration. The resulting screen recording will include direct sound from each of your selected audio sources, as well as sound from your own microphone as you speak.
When playing audio from applications and recording with a microphone, you'll want to set a pair of headphones as your audio output. This will avoid creating echoes with live speakers that would otherwise be picked up by your microphone.