diff --git a/CMakeLists.txt b/CMakeLists.txt
index 41ceaad6..e58e2b55 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -108,7 +108,7 @@ target_include_directories(
   $<BUILD_INTERFACE:${CMAKE_CURRENT_SOURCE_DIR}/include>
   $<BUILD_INTERFACE:${CMAKE_CURRENT_BINARY_DIR}/include>
   $<INSTALL_INTERFACE:${CMAKE_INSTALL_INCLUDEDIR}>
-  $<INSTALL_INTERFACE:${CMAKE_INSTALL_INCLUDEDIR}/${module-dir}>
+  $<INSTALL_INTERFACE:${SDFTD3_INSTALL_FMODDIR}>
 )
 
 # Add example application
@@ -153,7 +153,7 @@ install(
 install(
   DIRECTORY
   "${CMAKE_CURRENT_BINARY_DIR}/include/"
-  DESTINATION "${CMAKE_INSTALL_INCLUDEDIR}/${module-dir}"
+  DESTINATION "${SDFTD3_INSTALL_FMODDIR}"
 )
 if(SDFTD3_WITH_API)
   enable_language("C")
diff --git a/config/CMakeLists.txt b/config/CMakeLists.txt
index 1ec8b6c2..a72e4754 100644
--- a/config/CMakeLists.txt
+++ b/config/CMakeLists.txt
@@ -42,10 +42,10 @@ if(NOT DEFINED "${PROJECT_NAME}-dependency-method")
 endif()
 
 set(
-  module-dir
-  "${PROJECT_NAME}/${CMAKE_Fortran_COMPILER_ID}-${CMAKE_Fortran_COMPILER_VERSION}"
+  SDFTD3_INSTALL_FMODDIR
+  "${CMAKE_INSTALL_INCLUDEDIR}/${PROJECT_NAME}/${CMAKE_Fortran_COMPILER_ID}-${CMAKE_Fortran_COMPILER_VERSION}"
+  CACHE STRING "Installation directory for Fortran modules"
 )
-set(module-dir "${module-dir}" PARENT_SCOPE)
 
 # Set build type as CMake does not provide defaults
 if(NOT CMAKE_BUILD_TYPE AND NOT CMAKE_CONFIGURATION_TYPES)
@@ -86,6 +86,12 @@ install(
   DESTINATION "${CMAKE_INSTALL_LIBDIR}/cmake/${PROJECT_NAME}"
 )
 
+if(IS_ABSOLUTE "${SDFTD3_INSTALL_FMODDIR}")
+  set(pkgconfig_fmoddir "${SDFTD3_INSTALL_FMODDIR}")
+else()
+  set(pkgconfig_fmoddir "\${prefix}/${SDFTD3_INSTALL_FMODDIR}")
+endif()
+
 configure_file(
   "${CMAKE_CURRENT_SOURCE_DIR}/template.pc"
   "${CMAKE_CURRENT_BINARY_DIR}/${PROJECT_NAME}.pc"
diff --git a/config/template.pc b/config/template.pc
index 3d6efbb5..a6af557d 100644
--- a/config/template.pc
+++ b/config/template.pc
@@ -1,9 +1,10 @@
 prefix=@CMAKE_INSTALL_PREFIX@
 libdir=${prefix}/@CMAKE_INSTALL_LIBDIR@
 includedir=${prefix}/@CMAKE_INSTALL_INCLUDEDIR@
+fmoddir=@pkgconfig_fmoddir@
 
 Name: @PROJECT_NAME@
 Description: @PROJECT_DESCRIPTION@
 Version: @PROJECT_VERSION@
 Libs: -L${libdir} -l@PROJECT_NAME@
-Cflags: -I${includedir} -I${includedir}/@module-dir@
+Cflags: -I${includedir} -I${fmoddir}