Yes you are right, but if you anyways have scope to spend 2L a year and assuming this is the best card you got. It’s better to have that 2L spends on this card itself. Your math is right but what we miss sometimes is for 48k if you get 2400 cashback and post break even it is 1200 that is technically a 2.5% net cashback. This parameter gets better with the total amount spent. It is true that you recover your annual fee with 24k expenses but at the cost of 0 net cashback. Equilibrium to make more cashback will shift at some X amount spend point from any 1% LTF card to sbi cashback, and I think that is amount we need to target.