Toaster introduces us to Ramakant (Rajkummar Rao), who is a man defined by his extreme stinginess. He lives with his wife, Shilpa (Sanya Malhotra), who is a black belt in judo, in a rent-controlled apartment in a quaint society filled with senior citizens.

Shilpa, irate at Ramakant's frugality, nudges him into buying an expensive toaster worth Rs 5,000 as a wedding gift for her Guruji's daughter. When the wedding is called off at the last minute, Ramakant visits Guruji's house, learning to his dismay that all the gifts have been donated to an orphanage. He tries reasoning with the orphanage's manager (Farah Khan), but he is told in no uncertain terms to get lost. Desperate to return the toaster and get his money back, Ramakant stealthily enters the building after nightfall, grabs it, and escapes, but not before being spotted by the children and the guard. With the result that, the next morning, the police are waiting at his apartment to arrest him.