Burrs affect precision components and cause assembly related problems, and in general, decrease manufacturing productivity. Drilling burr formation involves multiple stages that are influenced by variation in thrust forces, temperature, stress conditions, and deformation modes in the unsupported length of the workmaterialbelow the drill. Several of these have not been adequately investigated so far. Therefore, the objective of this work is to model the complex phenomena that occur just before the exit of the drill tip from the bottom surface of the hole, and up to the complete exit of the drill point from the work surface. Accordingly, two models have been developed: (i) to estimate onset of bending in conjunction with theory of plasticity, which leads to the formation of a small drill cap under the pressure of steady-state drilling thrust forces, and (ii) to evaluate exitburr size that involves stretching and bending of a thin layer below the drill tip, using the principle of energy conservation. It is observed that a fracture is initiated at the chisel edge corner resulting in the formation of a small drill cap. The exit burr size predicted by the model is within one standard deviation from the average burrheight as determined from the experimental data.