diff --git a/Makefile b/Makefile
index 9583085d2..2cf59552a 100644
--- a/Makefile
+++ b/Makefile
@@ -15,10 +15,6 @@ ifdef SANITY_CHECK
 BLASDIRS += reference
 endif
 
-ifndef PREFIX
-PREFIX = /opt/OpenBLAS
-endif
-
 SUBDIRS	= $(BLASDIRS)
 ifneq ($(NO_LAPACK), 1)
 SUBDIRS	+= lapack
diff --git a/Makefile.install b/Makefile.install
index c02fd7230..cbe98bc5b 100644
--- a/Makefile.install
+++ b/Makefile.install
@@ -3,6 +3,8 @@ export GOTOBLAS_MAKEFILE = 1
 -include $(TOPDIR)/Makefile.conf_last
 include ./Makefile.system
 
+PREFIX?=/opt/OpenBLAS
+
 OPENBLAS_INCLUDE_DIR:=$(PREFIX)/include
 OPENBLAS_LIBRARY_DIR:=$(PREFIX)/lib
 OPENBLAS_BUILD_DIR:=$(CURDIR)