Buildings consume an enormous amount of energy and are responsible for emitting massive carbon dioxide. About 33% of total energy is consumed for achieving thermal comfort in buildings. Although building insulation is a sustainable and economical option for passive cooling and guarantees long-term return, its use is still minimal in India. Only 4% of building out of all green-rated buildings are residential In India. In this study, optimum insulation thickness of cellulose, corn-based insulation, polyurethane, and polystyrene when used with different plastered brick materials having different absorptivity of the external surface is evaluated using the life cycle costing method. Four cities of India, such as Delhi, Jodhpur, Mangalore and Pune, are considered for this study to cover all the climatic zones of India. The cost-saving that can be achieved by using optimum insulation thickness is in the range of 15.6$/m2-133.3$/m2, 23.5$/m2-171.2$/m2, 15.9$/m2-147.4$/m2 and 5.7$/m2-106.3$/m2 in Delhi, Jodhpur, Mangalore and Pune, respectively. The carbon mitigation potential of optimum insulations is in the range of 22.9 kg/kWh-136.5 kg/kWh, 32.2 kg/kWh − 173.9 kg/kWh, 23.1 kg/kWh − 150.4 kg/kWh, 10.2 kg/kWh − 109.6 kg/kWh in Delhi, Jodhpur, Mangalore and Pune respectively. This study will help create awareness about the cost-saving potential of insulation, thereby increasing its use, which will help India achieve the vision of creating a 10 billion square feet green built-up area.