Abstract: A cutting tool (10) adapted to produce chamfers along the edges of drywall panels. The tool (10,110,210) comprises a housing having a channel (18) defined by a base wall (13) and substantially parallel first and second sidewalls (15,17) that are substantially perpendicular to the base wall (13). A primary cutting blade (30) extends from the first sidewall (15) at an angle across the channel (18) toward the second sidewall (17). The primary blade (30) is configured to cut through an edge of a panel placed in the channel (18) as the cutting tool (10,110,210) is caused to move along the edge of the panel, thereby creating a chamfered edge on the panel. A second cutting blade (32) also extends from the first sidewall (15) and is positioned adjacent the primary blade (30) to create a perforation in the edge of the panel prior to the panel encountering the primary blade (30).