A digital image is a grid of pixels. DPI (dots per inch, also called PPI) is a number stored in the file that tells printing and layout software how many of those pixels to place in each inch of paper. It does not change how the image looks on a screen, and it does not add or remove detail.
The useful calculation is print size = pixels divided by DPI. A 3000 x 2000 pixel photo at 300 DPI prints at 10 x 6.67 inches. Set the same file to 150 DPI and it prints at 20 x 13.33 inches, with each pixel twice as large on paper. The tool shows this calculation for your image as you move the slider.