diff --git a/CMakeLists.txt b/CMakeLists.txt
index 07c123889..a6640515c 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -564,6 +564,9 @@ if (fftw3f_FOUND)
     string(APPEND LIQUID_PC_LIBS_PRIVATE " -lfftw3f")
 endif()
 
+cmake_path(APPEND libdir_for_pc_file "\${prefix}" "${CMAKE_INSTALL_LIBDIR}")
+cmake_path(APPEND includedir_for_pc_file "\${prefix}" "${CMAKE_INSTALL_INCLUDEDIR}")
+
 configure_file(
     cmake/liquid-dsp.pc.in
     ${CMAKE_CURRENT_BINARY_DIR}/liquid-dsp.pc
diff --git a/cmake/liquid-dsp.pc.in b/cmake/liquid-dsp.pc.in
index 93597a7e4..06de85dee 100644
--- a/cmake/liquid-dsp.pc.in
+++ b/cmake/liquid-dsp.pc.in
@@ -2,8 +2,8 @@
 
 prefix=@CMAKE_INSTALL_PREFIX@
 exec_prefix=${prefix}
-libdir=${prefix}/@CMAKE_INSTALL_LIBDIR@
-includedir=${prefix}/@CMAKE_INSTALL_INCLUDEDIR@
+libdir=@libdir_for_pc_file@
+includedir=@includedir_for_pc_file@
 
 Name: liquid-dsp
 Description: Software-defined radio digital signal processing library