diff --git a/dibbler/conf.py b/dibbler/conf.py
index 0a4e404..4e29514 100644
--- a/dibbler/conf.py
+++ b/dibbler/conf.py
@@ -34,3 +34,32 @@ def load_config(config_path: Path | None = None):
     else:
         print("Could not read config file, it was neither provided nor readable in default location", file=sys.stderr)
         sys.exit(1)
+
+def config_db_string() -> str:
+    db_type = config["database"]["type"]
+
+    if db_type == "sqlite":
+        path = Path(config["database"]["sqlite"]["path"])
+        return f"sqlite:///{path.absolute()}"
+
+    elif db_type == "postgresql":
+        host = config["database"]["postgresql"]["host"]
+        port = config["database"]["postgresql"].get("port", 5432)
+        username = config["database"]["postgresql"].get("username", "dibbler")
+        dbname = config["database"]["postgresql"].get("dbname", "dibbler")
+
+        if "password_file" in config["database"]["postgresql"]:
+            with Path(config["database"]["postgresql"]["password_file"]).open("r") as f:
+                password = f.read().strip()
+        elif "password" in config["database"]["postgresql"]:
+            password = config["database"]["postgresql"]["password"]
+        else:
+            password = ''
+
+        if host.startswith("/"):
+            return f"postgresql+psycopg2://{username}:{password}@/{dbname}?host={host}"
+        else:
+            return f"postgresql+psycopg2://{username}:{password}@{host}:{port}/{dbname}"
+    else:
+        print(f"Error: unknown database type '{db_type}'")
+        exit(1)
diff --git a/dibbler/main.py b/dibbler/main.py
index 33f25b4..de63975 100644
--- a/dibbler/main.py
+++ b/dibbler/main.py
@@ -4,7 +4,7 @@ from pathlib import Path
 from sqlalchemy import create_engine
 from sqlalchemy.orm import sessionmaker
 
-from dibbler.conf import load_config
+from dibbler.conf import load_config, config_db_string
 from dibbler.db import engine, session
 
 parser = argparse.ArgumentParser()
@@ -34,10 +34,8 @@ def main():
 
     load_config(args.config)
 
-    from dibbler.conf import config
-
     global engine, session
-    engine = create_engine(config['database']['url'])
+    engine = create_engine(config_db_string())
     session = sessionmaker(bind=engine)
 
     if args.subcommand == "loop":
diff --git a/example-config.toml b/example-config.toml
index 7abacb0..0a82593 100644
--- a/example-config.toml
+++ b/example-config.toml
@@ -5,8 +5,24 @@ show_tracebacks = true
 input_encoding = 'utf8'
 
 [database]
-# url = "postgresql://robertem@127.0.0.1/pvvvv"
-url = "sqlite:///test.db"
+type = 'sqlite'
+
+[database.sqlite]
+path = 'sqlite:///test.db'
+
+[database.postgresql]
+host = 'localhost'
+# host = '/run/postgresql'
+port = 5432
+
+username = 'dibbler'
+dbname = 'dibbler'
+
+# You can either specify a path to a file containing the password,
+# or just specify the password directly
+# password = 'superhemlig'
+# password_file = '/var/lib/dibbler/db-password'
+
 
 [limits]
 low_credit_warning_limit = -100
@@ -15,5 +31,5 @@ user_recent_transaction_limit = 100
 # See https://pypi.org/project/brother_ql/ for label types
 # Set rotate to False for endless labels
 [printer]
-label_type = "62"
+label_type = '62'
 label_rotate = false
diff --git a/nix/module.nix b/nix/module.nix
index db6a6ca..86b3335 100644
--- a/nix/module.nix
+++ b/nix/module.nix
@@ -77,7 +77,10 @@ in {
         groups.dibbler = { };
       };
 
-      services.dibbler.settings.database.url = lib.mkIf cfg.createLocalDatabase "postgresql://dibbler?host=/run/postgresql";
+      services.dibbler.settings.database = lib.mkIf cfg.createLocalDatabase {
+        type = "postgresql";
+        postgresql.host = "/run/postgresql";
+      };
 
       services.postgresql = lib.mkIf cfg.createLocalDatabase {
         ensureDatabases = [ "dibbler" ];