diff --git a/lib/__tests__/getData.test.js b/lib/__tests__/getData.test.js
index f1d6c7c..34060ce 100644
--- a/lib/__tests__/getData.test.js
+++ b/lib/__tests__/getData.test.js
@@ -117,3 +117,22 @@ it('returns parsed config and report contents when a custom coverage directory i
     },
   })
 })
+
+it('resolves <rootDir> as current directory', async () => {
+  jest.mock(
+    '../jest.config.js',
+    () => ({
+      coverageThreshold,
+      coverageDirectory: '<rootDir>/custom/coverage/directory',
+    }),
+    { virtual: true },
+  )
+
+  await getData(configPath)
+
+  expect(fs.readFileSync).toHaveBeenCalledTimes(1)
+  expect(fs.readFileSync).toHaveBeenCalledWith(
+    `/workingDir/custom/coverage/directory/coverage-summary.json`,
+    'utf8',
+  )
+})
diff --git a/lib/getData.js b/lib/getData.js
index 2c1b94a..e8f7d61 100644
--- a/lib/getData.js
+++ b/lib/getData.js
@@ -9,7 +9,7 @@ const getData = async configPath => {
   } = typeof config === 'function' ? await config() : config
   const reportPath = path.resolve(
     path.dirname(configPath),
-    coverageDirectory,
+    coverageDirectory.replace('<rootDir>', '.'),
     'coverage-summary.json',
   )
   const { total: coverages } = JSON.parse(fs.readFileSync(reportPath, 'utf8'))