diff --git a/README.md b/README.md
index 7508d353c..56103e541 100644
--- a/README.md
+++ b/README.md
@@ -151,6 +151,8 @@ jobs:
     - run: pipx run --python '${{ steps.cp310.outputs.python-path }}' nox --version
 ```
 
+>The environment variable `pythonLocation` also becomes available after Python or PyPy installation. It contains the absolute path to the folder where the desired version of Python or PyPy is installed.
+
 # Getting started with Python + Actions
 
 Check out our detailed guide on using [Python with GitHub Actions](https://help.github.com/en/actions/automating-your-workflow-with-github-actions/using-python-with-github-actions).
diff --git a/dist/setup/index.js b/dist/setup/index.js
index 9ab89d404..7e2673395 100644
--- a/dist/setup/index.js
+++ b/dist/setup/index.js
@@ -63993,7 +63993,7 @@ function findPyPyVersion(versionSpec, architecture) {
         const binaryExtension = utils_1.IS_WINDOWS ? '.exe' : '';
         const pythonPath = path.join(utils_1.IS_WINDOWS ? installDir : _binDir, `python${binaryExtension}`);
         const pythonLocation = pypyInstall.getPyPyBinaryPath(installDir);
-        core.exportVariable('pythonLocation', pythonLocation);
+        core.exportVariable('pythonLocation', installDir);
         core.exportVariable('PKG_CONFIG_PATH', pythonLocation + '/lib/pkgconfig');
         core.addPath(pythonLocation);
         core.addPath(_binDir);
diff --git a/src/find-pypy.ts b/src/find-pypy.ts
index 1008ed6ea..630d685ca 100644
--- a/src/find-pypy.ts
+++ b/src/find-pypy.ts
@@ -54,7 +54,7 @@ export async function findPyPyVersion(
     `python${binaryExtension}`
   );
   const pythonLocation = pypyInstall.getPyPyBinaryPath(installDir);
-  core.exportVariable('pythonLocation', pythonLocation);
+  core.exportVariable('pythonLocation', installDir);
   core.exportVariable('PKG_CONFIG_PATH', pythonLocation + '/lib/pkgconfig');
   core.addPath(pythonLocation);
   core.addPath(_binDir);