diff --git a/README.md b/README.md
new file mode 100644
index 0000000..927d0c7
--- /dev/null
+++ b/README.md
@@ -0,0 +1,123 @@
+novel-stats produces word count statistics for novels written in Markdown
+format, including total word count, per-chapter word counts, per-act word
+counts, and counts by chapter "status." It's fairly particular about the
+format of the novel, and doesn't currently include much in the way of error
+checking. Word counts may not be exact.
+
+Example output:
+
+```bash
+$ novel-stats example.md 
+chapter 1: 103 words (drafted)
+chapter 2: 83 words (dev edited)
+chapter 3: 115 words
+chapter 4: 96 words
+chapter 5: 136 words (drafted)
+
+act 1: 187 words
+act 2: 212 words
+act 3: 137 words
+drafted: 239 words
+dev edited: 83 words
+total: 539 words
+```
+
+## Installation
+
+Start by cloning the project with git. Then install it with Python's pip.
+Example
+
+```bash
+pip3 install /path/to/novel-stats
+```
+
+Or, if you'd like to install it "editable" (making development/updates
+easier):
+
+```bash
+pip3 install --editable /path/to/novel-stats
+```
+
+
+## Usage
+
+novel-stats takes a single argument: The path to your novel file in markdown
+format. For instance:
+
+```bash
+novel-stats /path/to/your/novel.md
+```
+
+## Markdown format
+
+You'll need to format your novel in the expected format for novel-stats to
+work.
+
+### Title and author
+
+Use `#` for the title and `###` for author name. Example:
+
+```yaml
+# Title of the Novel 
+### Author Name
+```
+
+These lines are generally ignored, although they do show up in the total word
+count.
+
+### Chapters
+
+novel-stats expects chapters to start with `##` and to have a numeric title.
+Example:
+
+```yaml
+## 1
+
+Once upon a time ...
+```
+
+### Chapter status
+
+Chapter "status" is an optional feature that lets you indicate certain
+chapters as "drafted", "dev edited", etc. and then get word count totals for
+each status. Example:
+
+```yaml
+## 3
+
+[status]: # (drafted)
+```
+
+If you do use this feature, you should set the status at the top of each
+chapter, before the actual chapter contents.
+
+There are no set values for the chapter status. Use the statuses that make
+sense for your writing workflow.
+
+
+### Acts
+
+Acts are an optional feature that let you indicate certain chapters as part of
+a particular act number, and then get word count totals for each act. Example:
+
+```yaml
+## 8
+
+[act]: # (2)
+```
+
+You only need to set the act for the *first* chapter in the act. Subsequent
+chapters are assumed to be in the same act unless otherwise indicated.
+
+If you do use this feature, you should set the status at the top of each
+chapter, before the actual chapter contents (and after any chapter status).
+
+
+### Example novel
+
+novel-stats includes an example Markdown file `example.md` that illustrates
+the expected Markdown format. Try it out:
+
+```
+novel-stats example.md
+```
diff --git a/setup.py b/setup.py
index b1ef599..4bc5b0c 100644
--- a/setup.py
+++ b/setup.py
@@ -6,7 +6,7 @@ VERSION = '0.1.0'
 setup(
     name='novel-stats',
     version=VERSION,
-    description='Produce word count statistics for a novel written in Markdown format.',
+    description='Produce word count statistics for novels written in Markdown format.',
     author='Dan Helfman',
     author_email='witten@torsion.org',
     url='https://projects.torsion.org/witten/novel-stats',