Abstract: An annular hole cutter of the type having an annular wall with teeth spaced around the lower end and flutes around its outer periphery. The web thickness between the flutes is about one-half the wall thickness. Each tooth has two circumferentially staggered cutting edges and oppositely inclined inner and outer back-off faces at the bottom thereof. The web is reduced in thickness at each tooth so that the inner cutting edge has a width of about one-third the wall thickness and the outer cutting edge has a width of about two-thirds the wall thickness. The inner and outer back-off faces are alternately vertically relieved so that each tooth produces either one or two chips, each of which is substantially narrower than the depth of the flutes which provide the escape path for the chips.