Step 2Mark & Cut the Felt
If you want to do it a fast simple way, you can just mark and cut out two 8-1/2" by 8-1/2" squares.
But if you want to a custom case, it's pretty simple to figure out how big to cut your pieces of felt.
To determine the length, figure out how long your longest pencil is and add about an inch to allow for seams and trimming (my longest pencil was 7-1/2" long, so I needed a length of 8-1/2").
To figure out your width, decide out how many pockets you want (you'll be able to use some pockets for more than one pencil) and multiply by 3/4", which is the width needed to snugly hold a pencil, then add about an inch total for seams and trimming. I went with 10 pockets, multiplying by 3/4" (.75") and adding an inch, for 8-1/2" wide felt.
Once you know how big you want it to be, mark it out with a fabric pencil and cut to size.
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