As the importance and prevalence of electromagnetic tracking in medical and industrial applications increases, the need for customized sensor design has escalated. This work focuses on AC-based electromagnetic tracking systems where off-the-shelf inductive sensors may not be optimal for many medical instruments or tracking applications. We present a repeatable approach for the design, optimisation and implementation of air-core and ferrite-core inductive sensors suitable for AC-based electromagnetic tracking. Coil-based sensors were designed and tested to investigate the effect of the usual coil parameters such as turn count, geometry and core material on sensor tracking accuracy and precision. Our methodologies were experimentally validated using the Anser EMT system which enabled rapid experimental deployment. Experimental performance is reported compared to off-the-shelf sensors. Static tracking errors of less than 2mm were achieved and close correlation with theoretical design sensitivity and precision was observed. This work may represent a valuable tool in the design of bespoke sensors for electromagnetic tracking where customize sensitivity and form factor are critical.