[quote author=Wikipedia]Hammer Drill
The hammer drill is similar to a standard electric drill, with the exception that it is provided with a hammer action for drilling masonry. The hammer action may be engaged or disengaged as required.
The hammer action is cheap but delicate. It uses two cam plates to make the chuck accelerate towards the work. However because of the relative masses of the chuck+bit and the remainder of the drill the energy transfer is inefficient and will fail to penetrate harder materials and vibrates the operators hand. The cams wear fast.
Compare this to a rotary/pneumatic hammer drill where just the bit is accelerated to the work. They have relatively little vibration and penetrate most building materials. It feels as though the work is sucking the bit inwards.
Large cam hammer drills, especially transverse motor, are crude in their action. The energy delivered in each stroke is highly variable. The cheaper drill will smash its way through the work and vibrate the surroundings, this can cause lots of collateral damage. A good SDS drill will gently pulverise the work material just in front of the bit and glide into the hole without any "fuss".
However there is a big difference in cost. In the UK typically ?12-40 for a cam hammer and ?100 up for a rotary/pneumatic. For light DIY use they are fine.
Rotary hammer drill
The rotary hammer drill (also known as roto hammer drill or masonry drill) is an electric drill type dedicated to drilling holes in masonry. The rotary hammer drill is a percussion drill that uses a weight to create the impact force on the masonry bit. Generally, the drill chuck of the rotary hammer drill is designed to hold SDS drill bits. Some styles of this drill are intended for masonry drilling only and the hammer action cannot be disengaged. Other styles allow the drill to be used without the hammer action for normal drilling.
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I've always disliked hammerdrills. Both their vibration and sound level are extremely irritating. A small rotohammer like the Makita Brice pointed out or my Bosch Bulldog does the work faster and is nicer to use.
Any of the small rotohammers will offer hammer-plus-rotation and rotation only modes. Some have hammer-only mode also. If that's important to you (I think it's nice to have), check carefully. At the time I bought mine, the Bosch D-handle Bulldog had hammer-only, while their pistol-grip Bulldog did not.
The Bulldog is great for installing anchors. It'll drill 1/2" (13mm) holes in rock or concrete block all day long. I've put holes over a foot long in rocks for water features. I've got a drill chuck for it, so it can also be a pretty heavy-duty wood/metal drill.
Limitations of hammer-only mode: this a tiny, lightweight, low-powered tool compared to those jackhammers powered by trailer-mounted air compressors. I have broken up concrete as large as one yard square (call it one meter square) and several inches thick, but I wouldn't do that every day and would have used a demolition hammer instead if one had been available. As it was, I drilled multiple holes and then used the chisel point. Not very time-efficient and I think verged on abusing the tool.
Limitations of drilling: If you want to drill big holes, the 7/8"-rated rotohammers are not what you need. I think Bosch offers SDS-Plus core drills up to 2.5" (63mm), but that's probably pushing it. You can make crude big holes by drilling around the circumference and then connecting the holes with a chisel point, but you won't go very deep this way before you'll decide you'd like to use some other method.
Ned