Posted by Chris Trice on 08/08/2014 13:54:14:
The figures you use are based on industry and rigid machinery.
My basic information came from 'Drills, Taps and Dies' by Tubal Cain in the Workshop Practice Series, not from industry. I use the same basic tapping drill sizes irrespective of whether I am hand tapping a couple of holes, or machine tapping hundreds of holes.
There is no point in having a full engagement thread. From a theoretical standpoint the roots and crests of threads are specified with clearances. So even if you have perfectly formed threads the engagement is not full depth.
As Chris correctly points out most taps extrude the thread slightly as well as cutting, so drilling on the basis of 100% depth of thread could be problematic. Again, as pointed out by Chris, drilling for a percentage of full engagement greatly reduces the torque needed to drive the tap. However, there is also the strength of the thread to consider. There are two possible failures; one stripping of the thread, or two, failure of the bolt. Stripping of the thread is determined by the shear strength of the material, and failure of the bolt by the tensile strength of the bolt. Generally the shear strength is higher than the tensile strength, so in most normal combinations the bolt breaks before the thread strips.
This is backed up by experiment. Some years ago I did some trials with M4 threads. The core diameter for M4 is 3.14mm, so you might drill 3.2mm for 'full thread' depth. I drilled and tapped a scrap piece of 6082 aluminium alloy with 3.4, 3.5 and 3.6mm drills, and then hand tapped the holes. I started off with a high tensile (12.9) SHCS in the hole drilled 3.6mm. The bolt broke before the thread stripped.
Any questions? 
Regards,
Andrew