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The Hidden Truth About n8n (n8n.io) – Why Self-Hosting Can Save You Money

  • Post Date
    August 6, 2025
  • 34  Views

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If you’re looking for a powerful automation tool but don’t want to spend hundreds of dollars on premium plans, self-hosting n8n (n8n.io) might be the solution you’ve been searching for. After spending $300 on n8n’s cloud service, I discovered that hosting n8n on my own server was not only cheaper but also gave me full control over workflows, privacy, and scaling.

What is n8n?

n8n (n8n.io) is an open-source workflow automation platform that connects apps, services, and APIs much like Zapier or Make (Integromat), but with unlimited executions when self-hosted.

While n8n.cloud offers a managed solution (starting from $20/month), the costs can pile up quickly for heavy users. Self-hosting eliminates those recurring charges, but you need to know how to do it the right way.

Why Self-Host n8n?

  1. Save Money on Executions
    With self-hosted n8n, you’re not paying for every task or workflow. Once it’s set up on your server, you can run unlimited automations without worrying about hitting monthly limits.
  2. Full Data Privacy
    Your workflows and data stay within your own infrastructure. This is ideal for companies dealing with sensitive customer data or compliance requirements.
  3. Full Customization
    You can install custom nodes, add community extensions, and tweak performance settings that are unavailable on the cloud version.
  4. Scalability
    If your automations grow, you can simply upgrade your server resources instead of paying for expensive subscription tiers.

The Hidden Costs of n8n.cloud

Before I discovered self-hosting, I spent $300 on n8n.cloud for premium usage. Here’s why that wasn’t worth it for me:

  • Execution-based billing – Costs increase as your workflows grow.
  • Limited server resources – You’re restricted by their plans.
  • No deep customization – You can’t install certain custom scripts or modules.

How to Self-Host n8n (Step-by-Step)

The good news? Self-hosting n8n is easier than you think. Here’s a simple overview:

  1. Choose a Hosting Provider

You can use a cheap VPS like:

  • Vultr ($5/month)
  • DigitalOcean ($5/month)
  • Hetzner (as low as €3/month)
  • AWS Free Tier (for small workflows)
  1. Install Docker

n8n runs best in Docker containers. Run:

bash

sudo apt update && sudo apt install docker.io docker-compose -y

  1. Deploy n8n
You can deploy with a simple docker-compose.yml file: 
      version: "3"

services:
  n8n:
    image: n8nio/n8n
    ports:
      - "5678:5678"
    environment:
      - N8N_BASIC_AUTH_ACTIVE=true
      - N8N_BASIC_AUTH_USER=admin
      - N8N_BASIC_AUTH_PASSWORD=securepassword
    volumes:
      - ./n8n_data:/home/node/.n8n

Run:

bash

docker-compose up -d

  1. Secure with SSL

Use NGINX + Let’s Encrypt for HTTPS:

bash

sudo apt install nginx certbot python3-certbot-nginx

Best Alternatives for Self-Hosted Automation

If you’re open to exploring other free self-hosted solutions, consider:

  • Activepieces – Similar to n8n but simpler to manage.
  • Windmill.dev – Open-source automation and scripting platform.
  • Huginn – Agent-based event automation.
  • Pipedream (self-hosted option) – Serverless workflows.

Is Self-Hosting Right for You?

  • YES, if you want unlimited workflows, lower costs, and full control.
  • NO, if you don’t want to manage servers, updates, or security patches.

Conclusion: Save Hundreds by Self-Hosting

Instead of paying $300 or more for managed n8n services, self-hosting on a $5/month VPS can handle the same tasks at a fraction of the price. Plus, you get better privacy and flexibility.

Looking for a development team that uses n8n the right way?
🔗 Contact Dignity Infoway – where technology meets integrity.

Tags:

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