Minimum font size?

Is there a minimum recommended font size for engraving with a 1/8 or 1/16 bit?

I’m trying to do simple pocket engravings of names in about a 3" or 4" , but can’t quite seem to find a font / size that will still look good that small.

for text, also consider using a V bit/vcarve… especially for smaller (< 2") text.

and the font really matters, some are much better than others (somehow I end up using cambria bold a lot… it does well both for v carving and for normal cutout)

I make 1" and 2" name plaques a lot, with a 2mm downcut bit (https://smile.amazon.com/gp/product/B073TXC45Z/ ) I get very good results
(for F&S on these bits, I use 20 ipm with a 12ipm plunge and a 0.04" depth of cut)

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For pocketing text, you’ll need to select a font / size which admits the endmill — you may want to look into single line fonts:

https://wiki.shapeoko.com/index.php/Inkscape#Hershey_Text

https://wiki.shapeoko.com/index.php/CAD#Fonts

https://wiki.shapeoko.com/index.php/Commercial_Software#Fonts

Or, as @fenrus suggested, use a V carving, see https://wiki.shapeoko.com/index.php/Endmills#V-bits for a guide to matching size with angle.