What's the max depth y'all are using when cutting out a project with the 1/8" cutting bit?

Most of my (limited) work so far has been with 3/4" thick stock, and I've been making 1/4" passes with the bit just to play it safe; but, it leaves distinct lines along the edge of the product that requires some additional sanding to smooth out (not to mention the additional time to go around the piece three times).

I want to be a little more efficient with my working time, but at cost of $40 to replace, I don't want to push the bit to the point of breaking.

Thanks for your comments!