The bidirectionally coupled magnetoelastic model (BCMEM) developed by Mudivarthi et al (2008 Smart Mater. Struct. 17 035005) has been extended to include electric currents in its magnetic finite element formulation. This enables the model to capture the magnetoelastic behavior of magnetostrictive materials subjected to elastic stresses and magnetic fields applied not only using permanent magnets but also the current carrying coils often used in transducer applications. This model was implemented by combining finite element solutions of mechanical and magnetic boundary value problems using COMSOL Multiphysics 3.4 (finite element modeling software) with an energy-based nonlinear magnetomechanical constitutive model. The coupling variables are magnetostriction and magnetic permeability, which are dependent on both the magnetic (magnetic flux density) and the mechanical (stress) states of a magnetostrictive material. In this research, the BCMEM was used to simulate actuator load lines for a magnetostrictive Fe 84 Ga 16 alloy, which were then compared with experimental data (Datta and Flatau 2008 Proc. SPIE 6929 69291Z). Also, the ability of the BCMEM to capture the ΔE effect in Galfenol was demonstrated. Finally, the use of the BCMEM as a tool for transducer design optimization is demonstrated by using the model to visualize the influence of different magnetic circuit designs on transducer performance.