Jim Thompson wrote:

1/4"-20 tap calls for 0.201" tap drill (13/64")

Into a steel 1/8" panel, tap is hard enough to turn that handles flex
:-(

Is that normal, or do I need to go up one or more drill sizes?

...Jim Thompson
#7 bit.

I use my small cordless black&decker 3/8 drill in slip mode
around 10 to drive the tap in, when it jams and the drill
chatters, reverse it and then reenter.
I do this all the time when making enclosure mounts etc..


P.S.
If you don't have drill&tap oil around, use D-40 and
use a start (tapered tip) tap not a bottom tap.