A cutting and forming tool assembly is disclosed that cuts and forms many types of material while remaining easy to use. The tool assembly may include a cutting or forming and an underlying board. The cutting and forming tool has a drive assembly and a shaft assembly contained within a housing. The shaft assembly of the tool assembly reciprocates and at least partially rotates during each reciprocating motion. The housing may be of various shapes and configurations, such as for example egg-shaped, computer mouse-shaped, or pen-shaped. The drive shaft contains a tip that protrudes from an opening in a lower portion of the housing during at least a portion of a downward stroke of the shaft assembly.