Level, plumb and perpendicularity indicator for power tool

A power tool includes a housing, an output shaft having a tool axis, and a motion sensor that senses motion of the tool housing. A control circuit receives an input signal from the motion sensor, to make a first determination, based on the input signal, whether the tool is being operated in a horizontal mode or a vertical mode. The control circuit makes a second determination, based on the input signal, whether the tool axis is substantially level when the tool is being operated in the horizontal mode or the tool axis is substantially plumb when the tool is being operated in the vertical mode. An indicator receives an output signal from the control circuit that causes the indicator to indicate whether the tool axis is level when being operated in the horizontal mode or plumb when being operated in the vertical mode.