Felted Coin Purse – Free Knitting Pattern
There is something deeply satisfying about making a small, functional object with your own hands. A coin purse sits right at that sweet spot between practical and charming — small enough to finish in an evening or two, useful enough to carry every single day, and handmade enough to earn compliments every time you pull it out of your bag. This felted coin purse pattern is one of those projects that beginners love because it forgives small tension inconsistencies (the felting process smooths them right out), and experienced knitters love because it gives them an excuse to dig into their stash of beautiful wool yarn and try something a little different.
In this post, you will find a complete free knitting pattern for a felted coin purse, along with detailed notes on choosing the right yarn, understanding the felting process, troubleshooting common problems, and customizing the finished purse to suit your style. Whether you are brand new to knitting or have been doing it for decades, this is a project worth adding to your queue.
Why Felt Your Knitting?
Before diving into the pattern itself, it is worth taking a moment to appreciate what felting actually does and why it makes such a wonderful finish for a coin purse specifically.
Felting — sometimes called wet felting or fulling when applied to knitted fabric — is the process of agitating wool fibers in hot, soapy water until the microscopic scales along each fiber shaft lock together. The result is a dense, fuzzy, almost fabric-like material that no longer looks or behaves like knitted stitches. It becomes thick, sturdy, and virtually non-fraying, which means you can cut it, shape it, and sew it without worrying about edges unraveling.
For a coin purse, these properties are ideal. Coins are heavy for their size and tend to wear out thinner fabrics over time. A felted purse holds up beautifully to the daily grind of being tossed into a handbag, sat on, and repeatedly opened and closed. The thickness also gives the purse a lovely structure so it does not flop around like a limp fabric pouch.
There is also a creative freedom that comes with felting. You knit the piece larger than the finished object, then shrink it down to exactly the size and density you want. This means small imperfections in your knitting — a slightly loose stitch here, a slightly tight row there — disappear entirely once the fabric felts. It is one of the most forgiving finishes in all of fiber arts.
Materials You Will Need
Yarn: 100% wool, approximately 50 to 80 yards. The most important thing here is fiber content. The yarn must be 100% wool (or another feltable animal fiber like alpaca, mohair, or a wool-alpaca blend) and it must not be labeled superwash. Superwash wool has been treated specifically to resist felting, so using it will result in a purse that simply grows and becomes misshapen rather than shrinking into a compact, dense fabric. Look for words like “feltable,” “feltworthy,” or simply check that the label says 100% wool with no superwash treatment. Bulky or worsted weight wool works well and felts relatively quickly. Brands like Cascade 220, Lamb’s Pride Worsted, Malabrigo Worsted, and Lion Brand Fishermen’s Wool are all reliable choices that felt predictably.
Needles: US size 10 (6.0 mm) or 10.5 (6.5 mm) straight or circular needles. You will be working flat, so straight needles are perfectly fine, but a short circular needle works too if that is what you have on hand.
Notions: A zipper approximately 5 to 6 inches long (you will trim it to fit if needed), a tapestry needle for seaming, scissors, a sewing needle and thread to match the zipper, and a zipper pull or small charm if you want to add a decorative touch.
For felting: Access to a washing machine, a small amount of laundry detergent or dish soap, a mesh laundry bag or pillowcase, and an old pair of jeans or tennis balls to add agitation.
Pattern Notes
Gauge before felting: Approximately 14 stitches and 20 rows per 4 inches in stockinette stitch using US 10 needles. Because you will be felting the finished piece, gauge does not need to be exact — but if your gauge is significantly different, your purse may end up a different size than described. This is easy to correct by felting longer or shorter.
Finished dimensions after felting: Approximately 4 inches wide by 3 inches tall. The felted fabric will be roughly 1/4 inch thick.
Abbreviations:
CO = cast on
K = knit
P = purl
BO = bind off
RS = right side
WS = wrong side
St st = stockinette stitch (knit on RS, purl on WS)
The Free Pattern
Casting On
Using the long-tail cast-on method (or your preferred cast-on), CO 28 stitches.
The long-tail cast-on is recommended here because it creates a slightly stretchy, even edge that felts nicely. If you are not familiar with it, a simple thumb cast-on or knitted cast-on will also work.
Body of the Purse
The purse is worked as a single rectangle in stockinette stitch. You will make two identical panels — a front and a back — and seam them together after felting.
Row 1 (RS): Knit across all 28 stitches.
Row 2 (WS): Purl across all 28 stitches.
Repeat Rows 1 and 2 until the piece measures approximately 7 inches from the cast-on edge. This will felt down to roughly 3 inches in height.
Bind off all stitches loosely. A loose bind-off is important — a tight bind-off can create a stiff, puckered edge that shows even after felting.
Make a second identical panel.
Optional Gusset
If you prefer a coin purse with a little depth — so it holds more change comfortably — you can add a simple gusset.
CO 6 stitches. Work in stockinette stitch until the gusset strip measures the same length as the sides and bottom of one panel when folded in half (approximately 17 inches before felting). This strip will be sewn along the bottom and two side edges of the purse during assembly, giving it a box-like shape.
Most knitters are happy with the flat version, which has plenty of room for coins, a folded bill, a small card, or even a lipstick. The gusset is entirely optional.
Seaming Before Felting
One of the unique aspects of this pattern is that you seam the purse before felting rather than after. This allows the seams to become fully integrated into the fabric during the felting process, creating a seamless-looking finish where the joins simply disappear.
Lay your two panels with wrong sides together. Using a tapestry needle and a length of the same yarn, use mattress stitch or whip stitch to seam along the bottom edge and both side edges, leaving the top edge open. The seam does not need to be beautiful or invisible at this stage — the felting will take care of that. What matters is that the stitches are secure and the seam lies flat.
Weave in your yarn ends securely. Double-knot them if you like, since you want nothing coming undone during the wash cycle.
If you are using a gusset, pin it in place along the sides and bottom before seaming.
Felting the Purse
This is where the magic happens, and it is genuinely one of the most exciting moments in knitting. You put something that looks like a floppy knitted pouch into the washing machine and take out something that looks like a boutique purchase.
Step 1: Place the knitted purse inside a mesh laundry bag or a zipped pillowcase. This contains any fiber shed during the felting process and protects your washing machine’s drain filter.
Step 2: Add an old pair of jeans or two tennis balls to the drum. The extra agitation helps the fibers lock together faster and more evenly.
Step 3: Set your washing machine to the hot wash setting with a cold rinse. Add a small squirt of dish soap or a tablespoon of laundry detergent. Avoid using fabric softener — it can actually inhibit the felting process.
Step 4: Start the cycle, but do not walk away. Check the purse every five minutes or so. Felting is not an exact science and the speed depends on your machine, your water temperature, and your yarn. Some yarns felt beautifully in one full cycle. Others need two. Some begin to felt within minutes.
Step 5: When the fabric looks dense and the individual stitches are no longer visible, remove the purse. Do not let it go through the spin cycle if you can avoid it — the spin can distort the shape. Squeeze out excess water gently by hand.
Step 6: Shape the purse while it is still wet. Use your hands to stretch or compress it into the shape you want. If the opening is slightly uneven, smooth it out now. Place a folded piece of cardboard or a small flat object inside to help it hold its shape while drying.
Step 7: Allow the purse to dry completely at room temperature. This typically takes 24 hours. Do not put it in the dryer — the heat can cause additional and uneven shrinkage.
Once dry, the fabric will be firm, dense, and smooth. Hold it up to the light and you should see no individual stitches — just a beautiful, even felt.
Adding the Zipper
Attaching a zipper to felted fabric is surprisingly easy because the thick, stable material does not shift or stretch the way woven fabric sometimes does.
Step 1: Trim your zipper to the correct length if needed. The opening of your finished purse should be roughly 4 inches wide, so a 5-inch zipper is ideal. To shorten a zipper, simply cut it from the bottom end (not the pull end) and sew a bar tack across the teeth just below your desired length.
Step 2: Position the zipper inside the top opening of the purse with the teeth facing out. Pin it in place. The zipper tape should sit just inside the edge of the felted fabric.
Step 3: Using a sewing needle and strong thread (upholstery thread is ideal but regular thread doubled works fine), sew the zipper in place with a whip stitch or backstitch along both sides of the tape. Take your time here — this is the structural seam that will take the most stress in daily use.
Step 4: If you want a cleaner finish on the inside, cut a small piece of felt or lining fabric and glue or stitch it over the zipper tape on the interior of the purse.
Step 5: Add a zipper pull if desired. A small lobster clasp charm, a ring with a decorative bead, or even a short length of yarn threaded through the zipper tab and knotted all make lovely, personal touches.
Customization Ideas
One of the best things about a project this simple is how much room it leaves for creativity. Here are some ideas for making the purse uniquely yours.
Color and color blocking: If you work the two panels in different colors, you get a purse with a contrasting front and back. If you stripe within a single panel, the stripes will soften and blur slightly during felting, creating a beautiful heathered effect.
Embroidery after felting: Once the purse is dry, the dense felt surface is ideal for embroidery. Wool embroidery thread, cotton embroidery floss, or even metallic thread can be used to add flowers, initials, geometric patterns, or anything else you like. The needle slides through felt easily and the stitches sit beautifully on the surface.
Leather or suede bottom: Cut a small piece of leather or faux suede to match the bottom of the purse and stitch it on as a reinforcement. This adds durability and a polished, artisan look.
Different closures: A magnetic snap, a button loop, or a small toggle closure can replace the zipper entirely if you prefer. Simply leave the top fully open, attach your preferred closure, and proceed.
Fringe and tassels: Cut short lengths of yarn and loop them through the bottom edge of the purse after felting for a bohemian fringe effect. The felt holds them securely without any knotting.
Troubleshooting Common Felting Problems
The purse is not felting: This almost always comes down to yarn choice. Double-check that your yarn is 100% wool and not superwash treated. If it is the right yarn but not felting, try increasing the water temperature and adding more agitation.
The purse is felting unevenly: This can happen if the yarn in different parts of the purse is from different dye lots or batches, or if there is a significant difference in tension between sections. Try placing the purse back in the machine for an additional short cycle, turning it inside out halfway through.
The purse has felted too much: Unfortunately, you cannot un-felt fabric. However, a very densely felted purse can sometimes be gently stretched while damp to add a little size back. Going forward, check more frequently during the felting process.
The seams are showing: If seam lines are still visible after felting, you can gently rub the seam area against itself while the purse is damp to further integrate the fibers. A little extra agitation by hand often does the trick.
Gifting and Selling
This pattern makes an exceptional gift. A felted coin purse is personal, handmade, useful, and beautiful — and because the knitting time is short, you can make several in a sitting using different colors and styles for different people on your list. Tuck some coins or a small gift card inside before wrapping it for an extra-thoughtful touch.
If you sell your handmade goods, this is also a wonderful pattern to add to your repertoire. Felted coin purses are popular at craft fairs and on handmade marketplaces because they photograph well, ship flat, and appeal to a wide range of buyers. If you use this free pattern to make items for sale, please feel free to do so — just note that the pattern itself is free for personal and small-business use.
Final Thoughts
A felted coin purse is one of those rare knitting projects that delivers a result far more impressive than the effort required. The knitting is simple enough for a complete beginner. The felting process is genuinely exciting to watch. And the finished object — dense, colorful, tactile, and practical — is something you will actually use and enjoy for years.
Keep this pattern bookmarked for a rainy afternoon, a long train ride, or a beginner friend who needs a satisfying first project. Dig into your wool stash and see what colors call to you. And once you have made one, do not be surprised if you find yourself casting on a second one before the first is even dry.
Happy knitting.
