Abstract Differential impedance spectroscopy (DIS) can offer distinct advantages over conventional impedance spectroscopy (IS), particularly for the in situ characterization of highly conductive, corrosive fluids. To enhance the understanding of DIS and determine the conditions under which this method is preferable over conventional IS with fixed electrode positions, error calculations were performed. Two scenarios were analyzed, one accounting solely for random instrument errors and the other including random errors as well as systematic errors from a serial offset impedance. Our analyses reveal that while permittivity measurements of highly conductive media remain challenging regardless of whether a conventional or differential impedance approach is used, DIS enables highly accurate conductivity measurements across a wide frequency and conductivity range. Studying different cell dimensions with equal cell constants revealed that despite the increased influence of systematic errors at small scales, conductivity can still be accurately measured, underscoring the applicability of DIS for microfluidic applications. Other potential parasitic effects, such as those arising from the electromagnetic skin effect, stray capacitances, electrode size, and temperature gradients, are discussed, providing a comprehensive framework for sample characterization with DIS.