Self-hosting N8N gives you unlimited workflows, complete data control, and massive cost savings compared to cloud automation platforms. But the setup process intimidates many people. | self-host N8N

I’ve deployed N8N for dozens of clients, and I’m going to walk you through the exact process I use—from a completely blank server to a secure, production-ready N8N instance.

Why Self-Host N8N?

Before we dive into technical details, let’s confirm this is right for you.

Self-hosting makes sense if you:

• Run more than 5,000 operations monthly (saves $50+ monthly vs cloud platforms)
• Handle sensitive data requiring on-premise control
• Need custom integrations or modifications
• Want unlimited workflows without per-workflow pricing
• Have basic command-line comfort (or willing to learn)

Stick with N8N Cloud or alternatives if you:

• Want zero maintenance
• Need guaranteed uptime without managing it
• Run fewer than 2,000 operations monthly
• Have no technical team member available
• Can’t dedicate time to initial setup

Still here? Let’s build this.

Choosing Your Server

You need a Virtual Private Server (VPS). Here are proven options:

DigitalOcean ($6-12/month): Best for beginners. Simple interface, great documentation, reliable performance. Recommended: Basic Droplet with 2GB RAM

Hetzner ($5-8/month): Best value. European servers, excellent performance per dollar. Recommended: CX21 or CPX11

AWS Lightsail ($10-20/month): Best for enterprises already using AWS ecosystem. Recommended: 2GB instance

Linode ($10-12/month): Solid middle ground. Good performance, responsive support. Recommended: Nanode 2GB

For starting out, I recommend DigitalOcean. The rest of this guide assumes you’re using it, but the process is similar across providers.

Server Requirements

Minimum specifications:

• 2GB RAM (4GB recommended for heavy use)
• 1 CPU core (2 cores recommended)
• 20GB SSD storage
• Ubuntu 22.04 LTS operating system

Don’t skimp on RAM. N8N with several workflows can consume 1-1.5GB easily.

Step 1: Server Setup and Security

Create your droplet/server with Ubuntu 22.04. Once it’s running, SSH in:

ssh root@your_server_ip

First, update everything:

apt update && apt upgrade -y

Create a non-root user for security:

adduser n8n
usermod -aG sudo n8n

Set up firewall:

ufw allow OpenSSH
ufw allow 80/tcp
ufw allow 443/tcp
ufw enable

From now on, use the n8n user, not root.

Step 2: Install Docker

N8N runs best in Docker. It’s cleaner, easier to maintain, and simpler to upgrade.

Install Docker:

curl -fsSL https://get.docker.com -o get-docker.sh
sudo sh get-docker.sh
sudo usermod -aG docker n8n

Log out and back in for group changes to take effect.

Install Docker Compose:

sudo apt install docker-compose -y

Verify installation:

docker --version
docker-compose --version

Step 3: Set Up N8N with Docker Compose

Create a directory for N8N:

mkdir n8n-docker
cd n8n-docker

Create a docker-compose.yml file:

yaml

version: "3"

services:
  n8n:
    image: n8nio/n8n
    restart: always
    ports:
      - "5678:5678"
    environment:
      - N8N_BASIC_AUTH_ACTIVE=true
      - N8N_BASIC_AUTH_USER=admin
      - N8N_BASIC_AUTH_PASSWORD=change_this_password
      - N8N_HOST=your_domain.com
      - N8N_PROTOCOL=https
      - NODE_ENV=production
      - WEBHOOK_URL=https://your_domain.com/
    volumes:
      - ~/.n8n:/home/node/.n8n

Replace change_this_password with a strong password and your_domain.com with your actual domain (we’ll set this up next).

Step 4: Domain and SSL Setup

You need a domain name pointing to your server. Use Namecheap, Google Domains, or any registrar.

Add an A record pointing to your server’s IP address.

Install Nginx:

sudo apt install nginx -y

Install Certbot for free SSL certificates:

sudo apt install certbot python3-certbot-nginx -y

Create Nginx configuration for N8N:

sudo nano /etc/nginx/sites-available/n8n

Add this configuration:

nginx

server {
    listen 80;
    server_name your_domain.com;

    location / {
        proxy_pass http://localhost:5678;
        proxy_set_header Connection '';
        proxy_http_version 1.1;
        chunked_transfer_encoding off;
        proxy_buffering off;
        proxy_cache off;
    }
}

Enable the site:

sudo ln -s /etc/nginx/sites-available/n8n /etc/nginx/sites-enabled/
sudo nginx -t
sudo systemctl restart nginx

Get SSL certificate:

sudo certbot --nginx -d your_domain.com

Certbot will automatically configure SSL. Choose option 2 to redirect HTTP to HTTPS.

Step 5: Launch N8N

Start N8N:

cd ~/n8n-docker
docker-compose up -d

Check if it’s running:

docker-compose ps

Visit https://your_domain.com in your browser. You should see the N8N login screen!

Step 6: Configure Backups

Never skip backups. N8N stores everything in ~/.n8n/, so back this up regularly.

Create a backup script:

bash

#!/bin/bash
BACKUP_DIR="/home/n8n/backups"
mkdir -p $BACKUP_DIR
tar -czf $BACKUP_DIR/n8n-backup-$(date +%Y%m%d-%H%M%S).tar.gz ~/.n8n/
# Keep only last 7 backups
ls -t $BACKUP_DIR/n8n-backup-*.tar.gz | tail -n +8 | xargs rm -f

Save as backup-n8n.sh, make executable:

chmod +x backup-n8n.sh

Schedule daily backups with cron:

crontab -e

Add this line:

0 2 * * * /home/n8n/backup-n8n.sh

This backs up daily at 2 AM, keeping the last 7 backups.

Step 7: Production Optimizations

Increase Docker Resources:

Edit docker-compose.yml to add memory limits:

yaml

    deploy:
      resources:
        limits:
          memory: 2G
        reservations:
          memory: 1G

Enable Execution Data Pruning:

Add to environment variables:

yaml

      - EXECUTIONS_DATA_PRUNE=true
      - EXECUTIONS_DATA_MAX_AGE=168

This deletes execution logs older than 7 days, preventing database bloat.

Set Up Monitoring:

Use Uptime Robot or similar to monitor your N8N instance and alert you if it goes down.

Step 8: Updating N8N

When new versions release:

cd ~/n8n-docker
docker-compose pull
docker-compose down
docker-compose up -d

Always check the N8N changelog for breaking changes before updating.

Troubleshooting Common Issues

N8N won’t start: Check logs: docker-compose logs n8n

Webhooks not working: Verify WEBHOOK_URL is set correctly in docker-compose.yml

Out of memory errors: Upgrade to a server with more RAM or optimize workflows

SSL certificate renewal fails: Ensure ports 80 and 443 are open and Nginx is running

Can’t access N8N: Check firewall: sudo ufw status Verify Nginx is running: sudo systemctl status nginx

Security Best Practices

Change default passwords immediately Enable two-factor authentication if using N8N’s user management Regularly update both N8N and the underlying server Restrict SSH access to specific IP addresses if possible Monitor logs for unusual activity Use strong encryption keys for N8N’s encryption features

Advanced: Multi-User Setup

For teams, set up proper user management:

yaml

      - N8N_USER_MANAGEMENT_DISABLED=false

This enables N8N’s built-in user management system.

Cost Breakdown

Monthly costs for self-hosted N8N:

• Server: $6-12
• Domain: $1-2 (annual cost divided by 12)
• Backups (optional offsite): $2-5
• Total: $9-19/month

Compare to cloud platforms charging $50-200+ for similar workflow volumes.

When to Upgrade Your Server

Upgrade if you experience:

• Workflows timing out regularly
• High memory usage (consistently over 80%)
• Slow execution times
• Server unresponsiveness

Simply resize your server in your hosting dashboard—most providers allow this with minimal downtime.

The Bottom Line

Self-hosting N8N requires initial time investment, but the payoff is substantial. You get unlimited automation power at a fraction of cloud platform costs.

The process looks long in this guide, but actual setup time is 1-2 hours. Ongoing maintenance is minimal—maybe 30 minutes monthly for updates.

If you handle sensitive data or run heavy automation, self-hosting isn’t just cheaper—it’s better.

Ready to take control of your automation infrastructure? Start today.