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The tool usually consists of a base housing a vertically mounted universal electric motor with a collet on the end of its shaft. The bit is height-adjustable to allow protrusion through an opening in a flat sole plate, usually via adjusting the motor-mounting height (the mechanism of adjustment is widely varied among manufacturers). Control of the router is derived from a handle or knob on each side of the device, or by the more recently developed "D-handle".

There are two standard types of router — plunge and fixed. When using a plunge-base router, the sole of the base is placed on the face of the work with the cutting bit raised above the work, then the motor is turned on and the cutter is lowered into the work. With a fixed-base router, the cut depth is set before the tool is turned on. The sole plate is then either rested flat on the workpiece overhanging the edge so that the cutting bit is not contacting the work (and then entering the work from the side once the motor is turned on), or the sole plate is placed at an angle with the bit above the work and the bit is "rocked" over into the work once the motor is turned on. In each case, the bit cuts its way in, but the plunge router does it in a more refined way, although the bit used must be shaped so it bores into the wood when lowered.

The baseplate (sole plate) is generally circular (though this, too, varies by individual models) and may be used in conjunction with a fence attached to the base, which then braces the router against the edge of the work, or via a straightedge clamped across the work to obtain a straight cut. Other means of guiding the machine include the template guide bushing secured in the base around the router cutter, or router cutters with built-in guide bearings. Both of these run against a straight edge or shaped template. Without this, the varying reaction of the wood against the torque of the tool makes it impossible to control with the precision normally required.

As an alternative, the tool can also be mounted in an inverted orientation below router tables and used as a miniature spindle shaper. The machine is mounted below the table in the manner akin to a circular saw mounted like a table saw. With such a set-up, it is often advisable that the work be passed over it along a fence. With some router table arrangements it is possible to adjust the bench to give the effect of tilting a saw bench so as to cut with the axis of the tool at an angle other than 90° to the face of the work.

Router bits come in hundreds of varieties to create either decorative effects or joinery aids. Generally, they are classified as either high-speed steel (HSS) or carbide-tipped, however some recent innovations such as solid carbide bits provide even more variety for specialized tasks.

Aside from the materials they are made of, bits can be classified as edge bits or non-edge bits, and whether the bit is designed to be anti-kickback. Edge bits have a small wheel bearing to act as a fence against the work in making edge mouldings. Non-edge bits require the use of a fence, either on a router table or attached to the work or router. Anti-kickback bits employ added non-cutting bit material around the circumference of the bit's shoulders which serves to limit feed-rate and thereby reduce the chance that the workpiece is pushed too deeply into the bit, causing the cutting edge to be unable to compensate, which results in significant kickback.

Bits also differ by the diameter of their shank, with ½ inch, 12 mm, 10 mm, 3/8 inch, 8 mm and ¼ inch and 6 mm shanks (ordered from thickest to thinnest) being the most common. Half-inch bits cost more but, being stiffer, are less prone to vibration (giving smoother cuts) and are less likely to break than the smaller sizes. The bit shank and router collet sizes must match. Many routers come with removable collets for the popular shank sizes (in the USA 1/2in and 1/4in, in Great Britain 1/2in, 8 mm and 1/4in and metric sizes in Europe - although in the United States the 3/8-inch and 8 mm sizes are often only available for extra cost).

Many modern routers allow the speed of the bit's rotation to be varied. A slower rotation allows bits of larger cutting diameter to be used safely. Typical speeds range from 8,000 to 30,000 rpm.

Router Bits can be made to match any imaginable profile. Companies which manufacture custom router bits may be found on the Internet. This is especially beneficial for home restoration projects when often the trim and molding of the home is out of production.