This Sugar-Free Salted Caramel Sauce is rich, buttery, silky smooth, and perfectly sweet without refined sugar or artificial preservatives or flavors. Made with just 4 simple ingredients, it’s an easy homemade caramel sauce that’s ready in under 15 minutes!

I am a sucker for anything salted caramel. Pancakes, waffles, coffee and lattes, ice cream, brownies.. Basically, if it can be drizzled, it can probably use a little salted caramel. Golden monk fruit gives this caramel its sweetness without the added sugar, while coconut milk creates a creamy, luscious texture. Add vanilla and a generous pinch of sea salt, and you’ve got that irresistible sweet-and-salty caramel flavor we all love.

This sauce pours like the real thing and tastes great with no artificial after taste that some store-bought ones can have. It’s so simple to make and quick too!

Why you’ll love this sugar-free salted caramel sauce

Completely sugar-free when using a sugar-free monk fruit sweetener
Made with simple ingredients
Dairy-free option & Paleo-friendly
Vegan-friendly when made with coconut oil
Ready in just minutes
Smooth, creamy, and perfectly salty
Delicious on desserts, breakfast, and drinks

Recipe video

Is this homemade sugar-free caramel sauce healthy?

While “healthy” can mean something different to everyone, I love that you can make this caramel at home with just a handful of ingredients you recognize and choose yourself. Let’s take a peek at how the ingredient lists compare:

Store-bought sugar-free caramel sauce:
Water, salt, caramel color, cellulose gum, xanthan gum, lactic acid, sucralose, potassium sorbate, sodium benzoate, natural flavors, and acesulfame potassium.

Homemade sugar-free caramel sauce:
Golden monk fruit, coconut milk, coconut oil or butter, vanilla, and sea salt.

The biggest difference? Simplicity. Instead of a long list of preservatives, stabilizers, artificial sweeteners, and added flavors, this homemade version uses just five ingredients. You also have complete control over the ingredients you choose, which means you can easily make it dairy-free, vegan, or paleo-friendly.

Ingredients You’ll Need

You only need five simple ingredients:

Golden monk fruit sweetener: Monk fruit is a popular sugar alternative that provides sweetness without adding sugar. Because different monk fruit blends can vary in sweetness and texture, I highly recommend using the one recommended here. It’s a blend of allulose and monk fruit (I don’t like using brands with erythritol).
Full-fat coconut milk
Vanilla extract
Sea salt
Coconut oil or butter: Use coconut oil or vegan butter if you want the caramel to remain dairy-free/vegan. Butter will give the sauce a more traditional buttery caramel flavor. Both are delicious, so it really comes down to your dietary preferences and the flavor you’re after.

How to Make Sugar-Free Salted Caramel Sauce

Be sure to scroll to the recipe card at the bottom of the post for the full measurements/instructions!

Step 1: Combine the Ingredients & simmer

Add the golden monk fruit sweetener, coconut milk, coconut oil or butter, and sea salt to a small saucepan.

Heat over medium-low heat, stirring frequently, until the mixture is smooth and begins to thicken. Avoid cooking it over high heat, as this can cause the coconut milk to separate.

Step 2: Add the flavor & cool

Remove the caramel from the heat and stir in the vanilla extract. Taste and add another pinch of sea salt if you’d like a more pronounced salted caramel flavor. Allow the sauce to cool slightly before serving. It will continue to thicken as it cools.

How to Use Sugar-Free Salted Caramel Sauce

This homemade caramel sauce is incredibly versatile. Try drizzling it over:

Vanilla ice cream or Ninja Creami
Greek or dairy-free yogurt
Apple slices or Apple crisp
Pancakes, waffles, & french toast
Brownies & Cheesecake
Chia pudding & Overnight oats
Protein desserts
Coffee and lattes
Smoothie bowls

You can even dip fresh apples straight into the jar. I fully support this method. 😉

Tips for the Best Sugar-Free Caramel

Use full-fat coconut milk. It creates the creamiest texture and helps give the sauce that rich caramel consistency.
Keep the heat moderate. Gentle simmering is your friend here. Too much heat can cause the coconut milk to separate.
Don’t skip the salt. The sweet-and-salty combination is what gives this sauce its signature salted caramel flavor.
Let it cool. The sauce thickens as it cools, so don’t worry if it looks slightly thinner while it’s hot.
Adjust the consistency. If the caramel becomes too thick after cooling, gently warm it and stir in a splash of coconut milk.

Frequently Asked Questions

Is this caramel sauce really sugar-free?
Yes, when made with a monk fruit sweetener that contains no added sugar. Always check the label of your specific sweetener, as monk fruit blends can contain other ingredients.
Is this caramel sauce keto-friendly?
Depending on the specific monk fruit sweetener and other ingredients you use, this recipe can fit into a keto-friendly diet.
Why is my caramel too thin?
Let it cool completely first. The sauce naturally thickens as it cools. If it’s still too thin, return it to the saucepan and simmer gently for a little longer.
Why did my caramel separate?
The heat may have been too high. Keep the sauce over medium-low heat and stir frequently while it cooks.

How to Store Sugar-Free Caramel Sauce

Transfer the cooled caramel sauce to an airtight jar and store it in the refrigerator for up to one week. Because the coconut oil or butter will firm up when chilled, the sauce may become quite thick in the refrigerator. Simply warm it gently before serving and stir well.

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