A terminal cutter includes a tool frame having a first cutting member coupled to an upper handle having a first cutting surface for cutting a terminal from a carrier strip and a second cutting member coupled to a lower handle having a second cutting surface for cutting the terminal from the carrier strip. A terminal strip guide assembly is coupled to the upper handle and/or the lower handle offset from the first and second cutting members. The terminal strip guide assembly includes a strip guide having a slot receiving the carrier strip and having a guide surface adjacent the slot. The guide surface is configured to engage the terminal to locate the terminal relative to the terminal strip guide assembly and to control a depth of the carrier strip received in the slot.