Your voltage drop calculator is wrong. Most of the calculators you can download are wrong when calculating phase to neutral loads. They incorrectly double the distance from the source to the load when calculating phase to neutral voltage drops. The definition of voltage drop is the drop from the source to the load, not the drop from the source to the load and then back again to the source. If you have access to an Eaton Consulting Application Guide, run your voltage drop calculation using their published voltage drop tables and you'll find you can do your circuit with #1/0 at 90% power factor. Then do it again with double the length of the circuit and it requires #250 kcmil just like the downloadable calculators show. Unfortunately, these calculators are prevalent and many engineers and electricians are putting in conductors much larger than required for phase to neutral single phase circuits.
Stephen W. Nelson, PE, RCDD
Leo A Daly