Plunge cut a 1/8 hole?

Using 1/8 bit, how do I simply plunge down to make a 1/8" hole? (In Carbide Create)

You can’t. It doesn’t support drilling — you have to enlarge the hole by ~10% and cut it as a pocket.

Or pocket it “true size” using a 1/16th cutter.

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I asked the same question starting out for quarter inch holes and felt dumb when I realized for most woodworking .25" and .252" are for all purposes the same.

Another option would be to use a tool which does support peck drilling — MakerCAM is one such: http://www.shapeoko.com/wiki/index.php/MakerCAM

In know you’re specifically asking about Carbide Create, but if you’re willing to try out Fusion 360 it’s very good for plunging down to drill holes.