Most Arctic clouds occur below 2 km altitude, as revealed by CloudSat satellite observations. However, recent studies suggest that the relatively coarse spatial resolution, low sensitivity, and blind zone of the radar installed on CloudSat may not enable it to comprehensively document low-level clouds. We investigate the impact of these limitations on the Arctic low-level cloud fraction, which is the number of cloudy points with respect to all points as a function of height, derived from CloudSat radar observations. For this purpose, we leverage highly resolved vertical profiles of low-level cloud fraction derived from down-looking Microwave Radar/radiometer for Arctic Clouds (MiRAC) radar reflectivity measurements. MiRAC was operated during four aircraft campaigns that took place in the vicinity of Svalbard during different times of the year, covering more than 25 000 km. This allows us to study the dependence of CloudSat limitations on different synoptic and surface conditions. A forward simulator converts MiRAC measurements to synthetic CloudSat radar reflectivities. These forward simulations are compared with the original CloudSat observations for four satellite underflights to prove the suitability of our forward-simulation approach. Above CloudSat's blind zone of 1 km and below 2.5 km, the forward simulations reveal that CloudSat would overestimate the MiRAC cloud fraction over all campaigns by about 6 percentage points (pp) due to its horizontal resolution and by 12 pp due to its range resolution and underestimate it by 10 pp due to its sensitivity. Especially during cold-air outbreaks over open water, high-reflectivity clouds appear below 1.5 km, which are stretched by CloudSat's pulse length causing the forward-simulated cloud fraction to be 16 pp higher than that observed by MiRAC. The pulse length merges multilayer clouds, whereas thin low-reflectivity clouds remain undetected. Consequently, 48 % of clouds observed by MiRAC belong to multilayer clouds, which reduces by a factor of 4 for the forward-simulated CloudSat counterpart. Despite the overestimation between 1 and 2.5 km, the overall low-level cloud fraction is strongly reduced due to CloudSat's blind zone that misses a cloud fraction of 32 % and half of the total (mainly light) precipitation amount.