The electrical and dielectric properties of liquids can be used for sensing. Specific appli-cations, e.g., the continuous in-line monitoring of blood conductivity as a measure of the sodium concentration during dialysis treatment, require contactless measuring methods to avoid any contam-ination of the medium. The differential transformer is one promising approach for such applications, since its principle is based on a contactless, magnetically induced conductivity measurement. The objective of this work is to investigate the impact of the geometric parameters of the sample or medium under test on the sensitivity and the noise of the differential transformer to derive design rules for an optimized setup. By fundamental investigations, an equation for the field penetration depth of a differential transformer is derived. Furthermore, it is found that increasing height and radius of the medium is accompanied by an enhancement in sensitivity and precision. © 2021 by the authors. Licensee MDPI, Basel, Switzerland.