A bearing removal tool and method are provided for removing a bearing swaged in a housing with speed and ease of use without damaging the housing, where the bearing removal tool includes a locating fixture having an annular support engaging an outer race of the bearing, with the locating fixture further including a locating mandrel extending axially from a center of the annular support into a center of the bearing locating the bearing outer race relative to the annular support; a cutter head having an axially extending shank extending from one end received in a drill press chuck, with the cutter head having at least one tooth extending axially away from the shank for cutting a swaged lip of the outer race of the bearing on a side of the bearing opposite from the side of the bearing engaged by the annular support.