A small, handheld sheet material cutter has a pair of cooperating cutting wheels and a mechanism for easily adjusting the position of one of the cutting wheels in order to provide a lateral gap of varying width between the cutting edges of the two cutting wheels, thus permitting the cutter to cleanly cut sheet material of various thicknesses. The cutter also has a guide bar that can be used in combination with any sheet metal brake to provide straight cuts. Since the cutter need not be mounted on a sheet metal-brake, it can also be used freehand to cut curves and angles.