A drill includes a housing and a motor coupled to an output member by a transmission. The transmission can selectively couple the output member to an output spindle through a low speed output gear or a high speed output gear for rotating the output spindle at a first speed or a second speed, respectively. Alternatively or additionally, a low speed mode can be provided by actuating an electronic switch that limits the speed of the motor. A rotatably fixed hammer member and a rotatable hammer member can be mounted around the output spindle. A mode collar can be rotatably mounted on the housing and around the output member for movement to positions that correspond to various mode of operation, including a low speed mode, a high speed mode, and a hammer-drilling mode. In the hammer-drilling mode, the transmission operates in the high speed mode.