Abstract: A rotary cutter for cutting holes of various sizes in sheet material such as self-adhesive pads. The cutter includes a base to which a cover is pivotally mounted for movement between a lowered closed position where it overlies the base and a raised open position. The cover has upstanding side walls defining a cavity between the roof of the cover and the upper surface of the base. A blade carried by a blade arm rotates within the cavity for cutting holes in sheet material carried on the base. The blade arm is adjustably secured to one end of a shaft extending into the cavity which is journaled in a bearing sleeve in the roof of the cover permitting rotary as well as axial movement permitting the blade to be pressed downwardly to the sheet material during rotary cutting operations. A crank arm is mounted to the other end of the rotor shaft for imparting rotary motion to the blade arm.