They’re all made of the same ingredients but the way they’re cooked really reflects the flavour. Caramel sauce: sugar is cooked until a golden colour before cream (and butter) are added to at the end. Toffee: sugar AND butter are cooked until golden, cream is added at the end. Butterscotch: sugar, butter, and cream are all cooked together until a sauce forms.  They all have slight differences in flavour and texture. Caramel tastes like caramelized sugar. It’s a classic flavour that works well with anything. Toffee tastes like brown butter and caramelized sugar. It has a richer, deeper flavour than caramel and looks shinier because of the butter. And butterscotch has the richest flavour, especially because it also usually uses brown sugar.