How does the magnetic dipole moment of a current loop depend on its current and area?

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When considering a current loop as a magnetic dipole, the strength of its magnetic dipole moment ( $μ$ or $m$ ) is directly proportional to both the current ( $I$ ) flowing through the loop and the size of the area ( $A$ ) enclosed by that loop.12

This relationship is expressed by the equation:
$μ = I A$

In this context, the magnetic dipole moment represents the dipole's ability to align itself with an external magnetic field. The direction of this moment is perpendicular to the plane of the loop, following the right-hand rule: if you curl the fingers of your right hand in the direction of the current, your extended thumb points in the direction of the magnetic dipole moment.12