A Dynamometer is a device for measuring the power generated by an engine or motor. The power is determined by multiplying the measured rotational speed and the measured torque. The torque is varied by placing a controllable load on the rotating shaft, and the power generated is usually dissipated as heat.
There are two main types of dynamometer (often abbreviated to dyno) - the engine dyno in which engines and gearboxes etc are placed in a controlled environment for test purposes - and chassis dynos where the complete vehicle can be tested by the use of a rolling road or other such simulated load.