Abstract: A tool setting gage has a base plate with a socket for receiving the tool to be set. A horizontally movable carriage is mounted on the base plate for movement toward and away from the tool socket normal to the axis of the tool. A vertically movable carriage is mounted on the horizontal carriage for up and down movement parallel to the axis of the tool. A feeler is mounted on the second carriage for contacting the cutting point of the tool responsive to the horizontal and vertical movements of the carriages. A transducer ascertains the position of the feeler and operates a digital readout for indicating the axial and radial dimensions of the cutting point.