A method and tool for forming decorative picots is provided. The tool comprises a triangular substrate having a base and two sides intersecting at an apex, indicia defining a centerline extending from the apex to the midpoint of the base, and indicia defining one or more guidelines extending from one side of the substrate to the other, parallel to the base. The method comprises placing the substrate on a rectangular strip of fabric having a width twice its height, aligning the substrate on the fabric such that the apex is positioned at the midpoint of the top edge of the fabric and the bottom edge is positioned parallel to the base of the substrate, folding the top edges of the fabric over the substrate to align with the centerline and applying an iron to the folded fabric to crease the fold.