diff --git a/doc/setup.xml b/doc/setup.xml
index 883285e3..50537850 100644
--- a/doc/setup.xml
+++ b/doc/setup.xml
@@ -40,10 +40,10 @@ You install <em>CScout</em> in five steps:
 	<li> Run <code>sudo make install</code>. If you want the installation
 to use a different directory hierarchy than the default
 <code>/usr/local</code></li>, you can specify this on the command
-line with the <code>INSTALL_PREFIX</code> variable.
-For example, you run <code>make install INSTALL_PREFIX=/home/mydir</code>
+line with the <code>PREFIX</code> variable.
+For example, you run <code>make install PREFIX=/home/mydir</code>
 to install <em>CScout</em> under your home directory or
-<code>sudo make install INSTALL_PREFIX=/usr</code>
+<code>sudo make install PREFIX=/usr</code>
 to install <em>CScout</em> under /usr.
 </ol>
 
diff --git a/src/Makefile b/src/Makefile
index 69a918d2..29928933 100644
--- a/src/Makefile
+++ b/src/Makefile
@@ -17,7 +17,7 @@
 # along with CScout.  If not, see <http://www.gnu.org/licenses/>.
 #
 
-INSTALL_PREFIX?=/usr/local
+PREFIX?=/usr/local
 
 # By default a production build is made.
 # For a debug build run make as:
@@ -87,7 +87,7 @@ AUTOHEADERS=parse.tab.h
 YACC=../btyacc/btyacc
 #YACC=yacc
 
-CPPFLAGS+=-pipe -Wall -I. -DINSTALL_PREFIX='"$(INSTALL_PREFIX)"'
+CPPFLAGS+=-pipe -Wall -I. -DPREFIX='"$(PREFIX)"'
 CXXFLAGS+=-std=gnu++11
 ifdef DEBUG
 # Debug build
@@ -270,15 +270,15 @@ obfuscation:
 	)
 
 install: build/cscout
-	install -Ds $< "$(INSTALL_PREFIX)/bin/cscout"
-	./dest-install.sh "$(INSTALL_PREFIX)"
+	install -Ds $< "$(PREFIX)/bin/cscout"
+	./dest-install.sh "$(PREFIX)"
 
 uninstall:
-	rm -f "$(INSTALL_PREFIX)/bin/cscc"
-	rm -f "$(INSTALL_PREFIX)/bin/cscout"
-	rm -f "$(INSTALL_PREFIX)/bin/csmake"
-	rm -f "$(INSTALL_PREFIX)/bin/cswc"
-	rm -rf "$(INSTALL_PREFIX)/include/cscout"
+	rm -f "$(PREFIX)/bin/cscc"
+	rm -f "$(PREFIX)/bin/cscout"
+	rm -f "$(PREFIX)/bin/csmake"
+	rm -f "$(PREFIX)/bin/cswc"
+	rm -rf "$(PREFIX)/include/cscout"
 
 example: build/cscout
 	cd ../example && ../src/build/cscout awk.cs
diff --git a/src/dest-install.sh b/src/dest-install.sh
index 42d7913d..256f05dc 100755
--- a/src/dest-install.sh
+++ b/src/dest-install.sh
@@ -31,10 +31,10 @@
 #host-defs			*		*		*
 #csmake-defs			*		*
 
-INSTALL_PREFIX="${1-/usr/local}"
+PREFIX="${1-/usr/local}"
 TMPFILE="/tmp/$0-$$"
 INC=../include
-INCLUDE_DIR="$INSTALL_PREFIX/include/cscout"
+INCLUDE_DIR="$PREFIX/include/cscout"
 # Permissions for header files
 HMODE=644
 
@@ -43,7 +43,7 @@ WORKAROUNDS_PRE="$INC/template/gcc-defs.h $INC/template/llvm-defs.h $INC/templat
 WORKAROUNDS_POST="$INC/template/llvm-undefs.h"
 
 # Create required directories
-install -d "$INCLUDE_DIR/stdc" "$INSTALL_PREFIX/bin"
+install -d "$INCLUDE_DIR/stdc" "$PREFIX/bin"
 
 # Generic C definitions
 install -m $HMODE $INC/stdc/*.h "$INCLUDE_DIR/stdc/"
@@ -94,9 +94,9 @@ install -m $HMODE $TMPFILE "$INCLUDE_DIR/host-incs.h"
 # Perl scripts (keep csmake.pl in the end)
 for f in cswc.pl csmake.pl ; do
   sed "s|INSTALL_INCLUDE|$INCLUDE_DIR|g" $f >$TMPFILE
-  install $TMPFILE "$INSTALL_PREFIX/bin/$(basename $f .pl)"
+  install $TMPFILE "$PREFIX/bin/$(basename $f .pl)"
 done
 # Install as cscc
-install $TMPFILE "$INSTALL_PREFIX/bin/cscc"
+install $TMPFILE "$PREFIX/bin/cscc"
 
 rm -f $TMPFILE
diff --git a/src/fileutils.cpp b/src/fileutils.cpp
index 27c940cb..25ae7c27 100644
--- a/src/fileutils.cpp
+++ b/src/fileutils.cpp
@@ -54,8 +54,8 @@ cscout_dirs()
 	dirs.push_back("../src");
 #endif
 	dirs.push_back(".cscout");
-#if defined(INSTALL_PREFIX)
-	dirs.push_back(INSTALL_PREFIX "/include");
+#if defined(PREFIX)
+	dirs.push_back(PREFIX "/include");
 #endif
 	if (getenv("CSCOUT_HOME"))
 		dirs.push_back(getenv("CSCOUT_HOME"));