A load balancer is a traffic cop: it sits in front of 2+ identical servers and spreads incoming requests across them, so no single machine drowns and a dead server stops receiving traffic.
You need one when either: (a) one server can't handle your traffic anymore — you've scaled vertically (bigger machine) as far as is sensible, or (b) you can't afford downtime — two servers behind a balancer means one can die or be redeployed while the other serves.
For a side project? You almost certainly have one already without knowing — Vercel, Railway, and every PaaS run balancers in front of your app. You only manage your own when you leave managed platforms, typically well past 10k+ concurrent users territory.
Interview tip: the follow-up is always 'how does the balancer decide?' Know round-robin, least-connections, and IP hashing, and mention health checks — that it stops routing to instances that fail them. Those four terms cover 90% of the question.