A silky-smooth low carb, sugar-free cream cheese frosting recipe perfect for carrot cake, red velvet, layer cakes, and cupcakes.

Cream cheese frosting has always been a favorite in my family — especially on my mother’s carrot cake. Each Easter she slathered that cake with tangy, sweet frosting and it was so irresistible I sometimes ate more frosting than cake. Now I continue that tradition for my own children, using a low carb, sugar-free version that keeps the classic flavor while fitting a ketogenic or low-carbohydrate lifestyle.
This recipe yields a silky, light frosting by whipping cream cheese and butter together, which tames the tang and gives a smoother texture than the old-fashioned, runnier frosting I remember. It’s quick to make and trims the sweetness using a powdered low-carb sweetener rather than refined sugar. That makes it ideal for decorating cupcakes, filling and frosting layer cakes, or topping red velvet and carrot cakes.

If you’re new to low-carb baking, a common question is how to replace granulated sugar in frostings. I use a powdered erythritol blend or powdered sweetener made for icings — brands such as Sukrin Icing Sugar or Swerve Confectioners are popular options. Because erythritol is not absorbed and contributes negligible net carbs, this frosting is suitable for many people managing blood sugar. Still, remember it’s a treat: portion control matters for anyone watching calories or carbs.
Watch out for recipes that call for honey or maple syrup and claim to be “refined sugar free.” Those liquid sweeteners still add significant sugars and carbohydrates, so they are not appropriate for low-carb or diabetic-friendly baking. Stick to a powdered low-carb sweetener or erythritol-based option for the best results.
This recipe serves 12 and is about 1 net carb per serving.
Low Carb Sugar Free Cream Cheese Frosting
A silky-smooth, low carb cream cheese frosting that works beautifully on cupcakes, carrot cake, red velvet, or layered cakes. Fast to make and easy to adjust for sweetness.
Ingredients
- 12 ounces Philadelphia cream cheese, cool but softened (about 1½ packages)
- 4 ounces salted butter, softened (8 tablespoons or 1 stick)
- ½ cup low carb powdered sugar (erythritol-based powdered sweetener)
- 2 teaspoons vanilla extract
- Stevia glycerite or stevia drops, to taste (optional)
Instructions
- In a medium bowl, beat the cool cream cheese until very smooth using a hand mixer or stand mixer.
- Add the powdered sweetener and beat until the texture lightens. Mix in the vanilla until fully incorporated.
- Add the softened butter and beat again until the mixture is well whipped and light. Taste and adjust sweetness with more powdered sweetener or a few drops of stevia if desired.
- Chill the frosting until you’re ready to use. Before frosting, beat briefly until light and fluffy. This recipe makes approximately 2 cups — enough to generously frost 12 cupcakes or to fill and frost a small layer cake.
Notes
This frosting holds up well in cool to room-temperature conditions but should be refrigerated if not served within a few hours, since it contains cream cheese. Bring it back to room temperature and beat briefly before using if chilled. For a firmer frosting, use slightly less butter; for a softer spread, add a tablespoon of heavy cream or a touch more butter.
Nutrition
Amount per serving (approximate): Calories 169; Fat 18g; Carbohydrates 1g; Protein 2g.
Because this frosting uses erythritol-based powdered sweetener, the net carbs are minimal. Adjust serving sizes to fit your dietary plan.

Whether you’re making a holiday carrot cake, a small layered celebration cake, or a batch of cupcakes, this low carb cream cheese frosting delivers the familiar tang and creamy richness without the added sugar. It’s versatile, quick, and easy to customize for sweetness and texture — a reliable go-to for low-carb baking.