diff --git a/docs/SETUP.md b/docs/SETUP.md
index 6e0bf7b..df50b86 100644
--- a/docs/SETUP.md
+++ b/docs/SETUP.md
@@ -5,6 +5,10 @@ This project is built using golang `1.23.1`.
 #### Setup steps
 
 1. Checkout this repository
-2. Run `go build -o target`
+2. Execute the script below
 
-This will build a `pilgrim` binary in the `target` folder.
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+This will build a `pilgrim` binary in the `target` folder:
+
+```bash
+$ go build -o target/pilgrim main.go
+```
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diff --git a/docs/TESTS.md b/docs/TESTS.md
index 4e60851..54ad60c 100644
--- a/docs/TESTS.md
+++ b/docs/TESTS.md
@@ -9,7 +9,7 @@ all interfaces in all packages of the project, and put them in the `mocks`
 directory, under the `pilgrim_mock` package
 
 ```bash
-mockery --all --outpkg pilgrim_mock --output ./internal/mocks
+$ mockery --all --outpkg pilgrim_mock --output ./internal/mocks
 ```
 
 #### Run Tests
@@ -17,5 +17,28 @@ mockery --all --outpkg pilgrim_mock --output ./internal/mocks
 To run all tests, execute the following from the root directory
 
 ```bash
-go test ./...
+$ go test ./...
+```
+
+#### Coverage
+
+To calculate test coverage, you have to build a special coverage binary and
+execute it. To do this, run the following in the root directory:
+
+```bash
+$ go build -cover -o target/pilgrim_coverage main.go
+```
+
+To calculate the coverage, execute the binary. You must setup the `GOCOVERDIR`
+environment variable in order to instruct the go coverage tool where to place
+the coverage data. The standard place for this in `pilgrim` is `coverage`:
+```bash
+$ chmod 777 ./target/pilgrim_coverage
+$ GOCOVERDIR=coverage ./target/pilgrim
+```
+
+This will produce several files containing the coverage data. To turn this into
+a human-readable format, use the go coverage tool:
+```bash
+$ go tool covdata percent -i=coverage
 ```
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