Biodiesel has emerged as a popular alternative to conventional fossil fuel in transportation sector and thus producing low-cost biodiesel is a topic of interest for a large community of researchers. This study reports the preparation of an efficient and robust heterogeneous catalyst from dried Psidium guajava L. (Guava) leaves and its application towards generation of biodiesel from soybean oil at room temperature. The biomass material was calcinated at variable temperature and the efficiency of each of the catalyst prepared was studied. The catalyst generated as well as the product biodiesel was thoroughly characterized using sophisticated analytical techniques. The catalyst was found to have mesoporous structure with active basic sites which contributed towards accelerating the transesterification process. Detailed characterization unveiled the occurrence of Ca as oxide and carbonate, in addition to a certain quantity of K in oxide and carbonate form, which contribute to the catalyst’s activity. Maximum biodiesel yield of 95.8 % was observed for reaction performed under optimum experimental conditions i.e., 1:17 oil-to-methanol ratio, 6 wt% loading of GL-850 (catalyst prepared by calcination at 850°C), and 15 % n-Hexane loading for 3 h at room temperature. GL-850 demonstrated exceptional recyclability for up to the fifth cycle exhibiting a mere 3.7 % decline in yield. The calculated expense for 1 kg catalyst was found to be $0.478, whereas the production cost of 1 kg biodiesel was found to be merely $1.120, indicating a strong economic feasibility of the process.