Felted Coin Purse – Free Knitting Pattern
There is something deeply satisfying about knitting a small project that transforms completely once it hits hot water. A felted coin purse is exactly that kind of project — quick to knit, magical to felt, and endlessly useful when finished. Whether you are a seasoned knitter looking for a weekend project or a beginner ready to try felting for the first time, this free knitting pattern will walk you through every step of creating a charming, durable little purse that is perfect for carrying coins, lip balm, earbuds, or anything else you want to keep tucked away in your bag.
Felting is one of the oldest textile techniques in the world, and when you combine it with knitting, you get a fabric that is thick, sturdy, and wonderfully forgiving. Even if your tension is slightly uneven or your increases are not perfectly symmetrical, the felting process smooths everything out and gives you a polished, professional-looking result. That is one of the reasons this project is such a joy to make — the journey from loose, floppy knitted fabric to a firm, dense little purse feels like a small act of alchemy every single time.
What You Will Need
Before you cast on, gather your materials. Getting the right supplies makes all the difference with felted projects, so take a moment to read through this list carefully.
Yarn: You need a feltable wool yarn. This is the most important detail. Choose 100% wool that is not labeled “superwash,” as superwash wool has been treated specifically to resist felting. A worsted or bulky weight feltable wool works beautifully for this pattern. Popular choices include Cascade 220, Lamb’s Pride Worsted, or any similar single-ply or loosely spun 100% wool. You will need approximately 100 to 150 yards, depending on the size you want.
Needles: Use US size 10 (6.0 mm) or 10.5 (6.5 mm) needles. The exact size matters less here than it does for regular knitting because the felting process will shrink and bind the fibers together regardless, but larger needles create a looser fabric that felts down more thoroughly. Double-pointed needles or a short circular needle work well for knitting in the round.
Notions: You will need a stitch marker, a tapestry needle for weaving in ends before felting, a zipper (7-inch or 8-inch works well for most finished sizes), sewing needle and thread to attach the zipper, and a small piece of mesh laundry bag or pillowcase.
Optional: Buttons, beads, or decorative stitching can be added after felting for a personal touch.
Understanding Gauge and Felting Shrinkage
With a felting project, you do not need to match gauge the way you normally would. What matters is that you knit loosely enough for the wool fibers to have room to tighten and mat together during the felting process. A fabric that looks far too open and floppy before felting will shrink down to the correct density.
That said, it is worth doing a small swatch before committing to the full project, especially if you have never felted before. Knit a small square, perhaps 15 stitches by 20 rows, then toss it in the washer and felt it along with your purse (or on its own as a test). This lets you see how much your particular yarn shrinks and in which direction, since felting often shrinks width and length at different rates.
As a general guideline, 100% wool fabric felted in a hot-water washing machine will shrink roughly 30 to 40 percent. This means your knitted piece needs to start out significantly larger than the finished purse you have in mind. The pattern below is written to produce a finished purse of approximately 4.5 inches wide by 3 inches tall after felting, which is an ideal size for a coin purse. If you want something larger, simply knit more rows and add more stitches.
The Pattern
Abbreviations
CO — cast on
K — knit
P — purl
K2tog — knit two together (right-leaning decrease)
SSK — slip, slip, knit (left-leaning decrease)
M1R — make one right (increase)
M1L — make one left (increase)
PM — place marker
SM — slip marker
BO — bind off
RS — right side
WS — wrong side
Cast On and Body
This purse is worked flat in two identical panels that are then seamed together before felting. Working flat makes it easier to keep track of rows and produces a clean, uniform fabric.
Panel 1 and Panel 2 (make two):
CO 30 stitches using the long-tail cast on method, which creates a neat, elastic edge that felts beautifully.
Row 1 (RS): Knit across.
Row 2 (WS): Purl across.
Repeat these two rows (stockinette stitch) until the panel measures approximately 6 inches from the cast-on edge. This will felt down to roughly 4 inches in height, giving you a purse with good depth.
Bind off loosely. A loose bind-off is important because tight bind-offs can create a visible, rigid ridge after felting.
Weave in all ends securely using your tapestry needle. Ends should be woven in at least 2 to 3 inches in multiple directions to ensure they do not come undone during the agitation of the felting process.
Assembling Before Felting
Place the two panels together with the wrong sides facing outward (which will become the outside of the purse once it is turned right-side out after felting). Using your tapestry needle and a length of the same wool yarn, whipstitch or mattress stitch along the bottom and up both sides. Leave the top open.
The seam does not need to be perfect or fancy — the felting process will tighten and blend the seam into the surrounding fabric, making it virtually invisible. Just make sure the seam is secure and that there are no gaps large enough for coins to slip through.
Turn the assembled pouch right-side out so the seams are on the inside.
The Felting Process
This is the most exciting step, and also the one that requires the most attention the first time you do it.
Place your knitted purse inside a mesh laundry bag or zip it into a pillowcase tied at the top. This step is important for two reasons: it contains any loose fibers that shed during felting, which protects your washing machine’s pump from clogging, and it also provides a small amount of friction that helps the felting process along.
Set your washing machine to the hottest water setting and the lowest water level you can manage while still submerging your project. Add a small amount of liquid dish soap or a little wool wash (roughly a tablespoon). The soap helps lubricate the fibers slightly, which actually promotes felting and prevents the fabric from becoming too stiff and cardboard-like.
Add an old pair of jeans or a few tennis balls to the laundry bag along with your purse. The extra agitation from these items dramatically speeds up the felting process.
Run the machine through the full wash cycle, but do not let it go through the spin cycle unattended — check your project every 5 to 8 minutes once the machine has been running for about 10 minutes. Pull the purse out and check its progress. You are looking for the individual stitches to become indistinguishable and the fabric to feel firm and dense rather than loose and floppy.
If the purse is not felted enough after one cycle, simply run it through again. Multiple short cycles give you more control than one long cycle, and you are less likely to over-felt.
Once you are happy with the density and size, rinse the purse thoroughly in cool water (do not wring it — this can distort the shape), then roll it in a towel to remove excess water. Shape the purse by hand while it is damp, pushing out the corners and making the opening straight and even, then stuff it lightly with a plastic bag or some crumpled paper to help it hold its shape as it dries. Lay it flat to dry, away from direct sunlight or heat, which can cause uneven drying.
Allow the purse to dry completely before adding the zipper. This may take 24 to 48 hours depending on the thickness of your felted fabric and the humidity in your home.
Adding the Zipper
Once the purse is completely dry, you are ready to add the zipper, which transforms it from a decorative little pouch into a functional coin purse.
Select a zipper that is approximately 1 inch shorter than the width of your finished purse opening. If your purse opening measures 4.5 inches, a 3.5-inch or 4-inch zipper works well. You can use a plastic or metal zipper — both work beautifully. A zipper with a decorative pull adds a nice finishing touch.
Thread your sewing needle with thread that matches the zipper tape or contrasts with the purse fabric for a decorative effect. Fold the top edge of the purse inward very slightly (about 1/4 inch) and pin the zipper in place with the zipper pull on the outside of the purse. The zipper should be centered along the opening, with equal amounts of fabric on each side of the zipper stop.
Sew the zipper in place using a simple whipstitch or a backstitch, working through the zipper tape and catching the felted fabric. Because felted fabric does not fray, you do not need to worry about finishing the raw edges. The stitches can be small and close together for a clean finish, or you can use a slightly larger, more visible stitch as a decorative element.
Once both sides of the zipper are attached, open and close it a few times to make sure everything lines up properly. If you notice any puckering or unevenness, simply remove a few stitches, adjust, and re-sew.
Variations and Customizations
One of the great pleasures of making a felted coin purse is how easy it is to customize. Once you have made the basic version, the possibilities for variation are almost unlimited.
Color and stripes: If you want to incorporate stripes, simply switch colors at the beginning of a right-side row as you knit the panels. Color transitions felt beautifully and the stripes will remain crisp and clean after felting, especially if you use bold contrasting colors. Fair isle or simple color-block designs also translate well to felting.
Embroidery: After felting and drying, the surface of the purse is an ideal canvas for embroidery. Because felted fabric is so dense, embroidery stitches sit on top of the surface rather than pulling through, which gives a lovely three-dimensional quality. Simple flowers, geometric shapes, or initials all work well. Use wool yarn or embroidery floss in contrasting colors.
Decorative buttons: A large decorative button sewn to the outside of the purse, perhaps with a loop closure instead of a zipper, gives the purse a different character entirely. This is a lovely option if you prefer not to sew in a zipper.
Size adjustments: To make a larger purse — something that could hold cards or even fold flat as a small wallet — simply cast on more stitches and add more rows. A cast-on of 45 stitches and panels measuring 8 inches before felting will give you a larger, rectangular purse that can hold a surprising amount.
Texture: Try knitting the panels in seed stitch or garter stitch instead of stockinette for a different surface texture. Garter stitch tends to felt into a softer, slightly thicker fabric than stockinette, while seed stitch creates a subtly pebbled texture that is very tactile and pleasant to hold.
Tips for Felting Success
A few final tips will help you get the best results from this project, especially if you are felting for the first time.
Always test your yarn before committing to the full project. Not all wools felt at the same rate, and some feltable wools shrink dramatically while others remain relatively stable. A small test swatch saves disappointment later.
Resist the urge to rush the drying process. A purse that is dried too quickly near a heat source can shrink unevenly or develop a stiff, cardboard-like feel. Room temperature drying produces the best results.
If you have over-felted your purse — if the fabric has become too thick and stiff or the opening has closed up too much — there is unfortunately no way to reverse the felting process. This is why checking the purse frequently during washing is so important. Over-felting is the most common mistake beginners make, and it is entirely preventable with a little patience.
Keep a record of how many minutes of machine time your yarn required to felt properly. This information will be invaluable for your next felting project, since you will already know how your particular yarn behaves.
Why Felted Purses Make the Perfect Gift
A felted coin purse is one of those knitting projects that punches well above its weight as a gift. It looks handmade in the best possible way — substantial, carefully crafted, and unique — but it takes only a few hours from cast on to finished object. A set of three in coordinating colors tucked into a little basket makes a lovely birthday or holiday gift. A single purse in someone’s favorite color, perhaps with their initial embroidered on the front, is a thoughtful, personal gesture.
Because the felting process makes the fabric so durable, these purses hold up beautifully to everyday use. They do not snag, they resist water to a degree, and they develop a pleasant patina over time as the wool fibers compress further with use. A well-made felted purse can last for years.
A Few Words About Sustainability
Knitting and felting with natural wool is a wonderfully sustainable craft when approached thoughtfully. Wool is a renewable resource that biodegrades at the end of its useful life, unlike synthetic fibers that persist in landfill for centuries. When you choose yarn from ethical producers — look for certifications like the Responsible Wool Standard or choose yarn from small farms with transparent practices — your finished object carries a story that is genuinely good from start to finish.
Making your own accessories instead of buying mass-produced plastic items is also a quiet act of sustainability. A wool coin purse that lasts for years replaces countless cheap alternatives that would otherwise end up in the trash. That is worth something, even if it is hard to quantify.
Final Thoughts
The felted coin purse is the kind of project that reminds you why you fell in love with knitting in the first place. It is fast, it is satisfying, it involves a little bit of magic, and the result is something you will actually use. The pattern above is designed to be flexible enough that you can make it your own — change the colors, adjust the size, add embellishments, or keep it perfectly simple. However you approach it, you will end up with a purse that is genuinely beautiful and genuinely useful, made by your own hands from materials that have been around for thousands of years.
Cast on, felt freely, and enjoy every stitch.
