The inverse problem of magnetotellurics over a horizontally stratified earth is described, with emphasis on practical application. The inversion is divided into basically two steps. The construction of some best solution, and the analysis of that solution with regard to uncertainty and complexity. For the construction of best solutions a robust non‐linear solver was developed, and for the estimation of parameter errors a modified eigenvalue‐eigenvector analysis is performed to better describe non‐linear effects. The choice of the number of layers is shown to be intimately connected with the structure of data errors and the misfit between model and data. An example from the Siljan impact structure in Sweden illustrates the power of the technique.