diff --git a/Makefile b/Makefile
index 2bdb8ec0..cd14dfbf 100644
--- a/Makefile
+++ b/Makefile
@@ -40,10 +40,10 @@ $$(out) : out = $(subst courses/,out/,$(subst src/,out/,$(subst .lagda.md,.md,$(
 $$(out) : $$(in) | out/
 	@echo "Processing $$(subst ./,,$$(in))"
 ifeq (,$$(findstring courses/,$$(in)))
-	./highlight.sh $$(in) $$(out)
+	./highlight.sh $$(in)
 else
 # Fix links to the file itself (out/<filename> to out/<filepath>)
-	./highlight.sh $$(in) $$(out) --include-path $(realpath src) --include-path $$(realpath $$(dir $$(in)))
+	./highlight.sh $$(in) --include-path $(realpath src) --include-path $$(realpath $$(dir $$(in)))
 	@sed -i 's|out/$$(notdir $$(out))|$$(subst ./,,$$(out))|g' $$(out)
 endif
 endef
diff --git a/highlight.sh b/highlight.sh
index 9080a2aa..c8abca36 100755
--- a/highlight.sh
+++ b/highlight.sh
@@ -5,9 +5,14 @@ AGDA_STDLIB_SED=".agda-stdlib.sed"
 SRC="$1"
 shift
 
-OUT="$1"
+function out_path {
+    OUT="$1"
+    OUT=$(eval "echo \"$OUT\" | sed -e \"s|/src/|/out/|; s|/courses/|/out/|; s|\.lagda\.md|\.md|;\"")
+    echo "$OUT"
+}
+
+OUT="$(out_path $SRC)"
 OUT_DIR="$(dirname $OUT)"
-shift
 
 # Extract the module name from the Agda file
 # NOTE: this fails if there is more than a single space after 'module'