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Header Text: Learn What Self-Hosting n8n for Your Business Involves and Costs
20Oct
8

Is Self-Hosting n8n Right For Your Business?

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TL;DR

Self-hosting n8n is right for your business if you have someone who can manage a Linux server, your workflows run often enough for cloud execution costs to add up, or you need more control over where data is stored and processed. If no one can manage updates, security, and backups, n8n Cloud is usually the better place to start.

KEY TAKEAWAYS

  • The n8n Community Edition is free to self-host, but you pay for the server and the time it takes to run it.
  • n8n itself recommends self-hosting only for people experienced with servers; mistakes can cause data loss, security issues, and downtime.
  • Self-hosting removes execution allowances, which matters because n8n Cloud plans are priced by monthly workflow executions.
  • A South African server keeps your n8n instance local, but data still leaves the country whenever a workflow sends it to an offshore service.
  • The free licence covers your own internal business use; offering n8n to your customers needs a commercial licence.

What Does Self-Hosting n8n Mean?

n8n is a fair-code workflow automation platform that connects apps and services to automate tasks and move data between them, called workflows. A workflow execution is one run of an automation, processed step by step from a trigger to completion. If you’re new to the platform, start with what n8n is and how it works.

There are three ways to run n8n:

  1. n8n Cloud: n8n hosts and maintains the platform for you so that you can build and execute workflows without server management.
  2. DIY Self-Hosting: You run n8n on your own server or a blank Linux VPS Hosting plan, usually with Docker or npm. A VPS (Virtual Private Server) is a private environment with dedicated resources (CPU, RAM, storage) that you manage.
  3. VPS with n8n Pre-Installed: The software is installed on a VPS by your hosting provider, but you still run n8n and manage the server yourself.
Strip Banner - You control where n8n runs but manage security and updates yourself.

What Changes When You Self-Host

The main difference between n8n Cloud and self-hosting is who manages the platform. With n8n Cloud, n8n manages the infrastructure, including the server, updates, and scaling, letting you focus on building and running automations.

When you self-host, you take on those responsibilities. In return, you get more control over where your instance runs, without the monthly execution allowances that come with n8n Cloud plans.

If you’re looking at other automation platforms, you can also see how n8n compares with Zapier and Make.

What Self-Hosting n8n Really Costs

The real cost depends on how often your workflows run. One workflow run counts as one execution, whether it has 3 steps or 30. For example, an online store uses a workflow to check for new orders every 5 minutes; that works out to:

  • 12 executions per hour
  • 288 executions per day
  • 8,640 executions over 30 days

That’s well over three times the 2,500 executions included in n8n Cloud’s Starter plan each month, according to n8n’s official pricing as of October 2026. And that’s before you run any other workflows, meaning you’ll have to upgrade to a higher-tier plan.

When you self-host, there are no per-execution fees and workflows can run as often as needed, provided your server can handle the load.

To answer the question: Is n8n self-hosted free? The software is free; running it isn’t. Costs include server size and the time it takes someone to set it up, apply updates, monitor performance, and fix issues.

Self-hosting n8n can cut automation costs, but if you run only a few workflows occasionally, n8n Cloud can be the cheaper option.

What You’re Responsible for When You Self-Host

Self-hosting n8n requires technical knowledge and ongoing maintenance. You’re responsible for security, updates, and keeping your automations running.

Here’s what you’re responsible for:

  • Updates: Keep n8n software up to date and apply operating-system security patches.
  • Security: Set up HTTPS, use proper authentication, and restrict n8n editor access. You should also register a domain for the editor and webhook URLs.
  • Backups: Regularly back up your database, workflows, and credentials, and test restoring them to make sure you can recover your data.
  • Monitoring and Uptime: Watch for server and workflow failures so you can identify and fix problems.
  • Scaling: Add CPU and RAM as workloads increase or use queue mode to distribute executions across multiple worker processes to prevent bottlenecks.
  • Licence Compliance: Make sure you keep your use of n8n internal and in line with the free licence terms.

NOTE:

Back up n8n’s credential encryption key stored in the ~/.n8n/config file or set through the N8N_ENCRYPTION_KEY configuration setting (config variable). Without it, encrypted credentials can’t be decrypted or recovered.

POPIA: Where Your Workflow Data Actually Goes

The Protection of Personal Information Act (POPIA) regulates how South African businesses handle personal information, including data transferred to a third party in another country.

Hosting n8n on a South African server gives you more control over where your data is stored and processed. That said, even if your instance, database, and execution logs are in South Africa, it doesn’t mean your business is automatically POPIA-compliant.

If your automations send customer information to an overseas CRM, email platform, or AI agent, it still leaves the country.

Under Section 72 of POPIA, these transfers are restricted unless certain conditions are met, such as the recipient providing enough protection or the person giving consent.

While local hosting helps with compliance, it’s only part of it. Map the workflows that handle personal information, where the data goes, and which services receive it to check whether they meet POPIA requirements. It’s best to confirm with your information officer or legal adviser.

Strip Banner - Self-hosting removes execution fees, but you pay for the server and hosting.

The n8n Licence: What “Free” Covers

The self-hosted n8n Community Edition operates under the Sustainable Use License, a fair-code licence that lets you use and modify the source code but restricts certain commercial uses.
https://docs.n8n.io/n8n-community-license/community-license

Because of these restrictions, n8n describes itself as source-available rather than open source under the Open Source Initiative’s (OSI) definition.

As of October 2026, you can use n8n for free for internal business operations, personal tasks, or non-commercial projects, but it limits how you can offer it to customers. Agencies can build and manage automations for clients, but they can’t access or edit the n8n instance. Otherwise, you’ll need a commercial license.

So, if you run an agency or SaaS business, check n8n’s licence FAQ or contact: license@n8n.io to confirm your setup is permitted.

Is Self-Hosting n8n Right for Your Business? A Quick Checklist

Choosing whether to self-host n8n comes down to your technical skills, how often your workflows run, and how much control you need over your data.

Self-host n8n if:

  • You have someone on your team, or a provider, who can manage Linux servers, security, and backups.
  • Your workflows run regularly, or you plan to add automations as your business grows.
  • You need more control over where your instance and data are stored.
  • You want to run custom code, install community nodes, or give it internal system access.

Choose n8n Cloud if:

  • You don’t have the technical skills available to maintain a server.
  • You run a few workflows that execute occasionally.
  • You prefer managed infrastructure and updates with official support.
  • You’re still experimenting with automations.

n8n’s official guidance recommends self-hosting for experienced users and n8n Cloud for those just getting started.

There’s also a middle ground. A VPS with n8n pre-installed removes the initial installation work while giving you control over your server configuration. However, unless your provider includes them, you’re responsible for maintenance, updates, security, and workflow management.

Running n8n On Your Own South African VPS

If self-hosting makes sense for your business but you’d rather skip the initial installation and manual setup, running n8n on your own VPS can be the right way to go.

Domains.co.za’s Self-Hosted n8n VPS plans come with n8n pre-installed on Debian 13, fully set up and ready to use. The servers are hosted locally at the Teraco data centre in Isando, Johannesburg.

With Domains.co.za’s n8n VPS launch, you get full root access, scalable resources, and a free monthly snapshot backup. You can run unlimited workflows without per-execution charges, provided your server has enough resource capacity.

Keep in mind that pre-installed doesn’t mean fully managed. You’re still responsible for n8n updates, security, and workflow management.

Ready to run n8n on your own server in South Africa? Compare Domains.co.za’s Self-Hosted n8n VPS plans, with n8n pre-installed and ready to configure.

Strip Banner - Run Your Automations on VPS Hosting with n8n pre-installed [Compare Plans]

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FAQS

Is n8n free to use?

Yes. The self-hosted n8n Community Edition is free for personal or internal business use, but you still pay for hosting and maintenance. n8n Cloud is a paid monthly service, and advanced features like SSO (single sign-on) need a paid licence even when self-hosted.

How much server do I need to run n8n?

Domains.co.za recommends at least 2 GB RAM for smooth performance, although 1 GB is the minimum. You’ll need more RAM and vCPU cores if you’re running multiple workflows, processing large files, or handling AI workloads. Exact n8n self-hosted requirements depend on workflow volume and complexity

Can I run n8n on shared web hosting?

Generally, no. Unlike a standard website, n8n needs a Node.js application to run continuously in the background. Most shared web hosting plans don’t provide the server access and dedicated resources it needs. A VPS or similar server is required to keep n8n running reliably.

Can I move from n8n Cloud to self-hosted later?

Yes. You can export your workflows as JSON files and import them into a self-hosted instance. Keep in mind that credentials cannot be exported for security reasons and must be recreated manually, and execution history does not transfer over. You’ll also need to re-verify your connections and webhook URLs after migrating.
You just need to change your product to a Linux VPS, nothing else changes, nothing will go down, and nothing will require reinstalling.

Can an agency self-host n8n to run clients’ automations?

Yes, provided the agency meets n8n’s licence conditions. Agencies can build and manage client workflows on their own instance, as long as clients cannot create or edit workflows themselves; otherwise, they require a commercial license. Check n8n’s licence FAQ or email license@n8n.io.

Is n8n open source?

Not under the OSI definition. Although n8n’s source code is publicly available for use and modification, its Sustainable Use License restricts certain commercial uses as of October 2026. This is why n8n describes itself as fair-code, rather than open source.

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