Deciding whether to self-host n8n or use its cloud service involves a critical trade-off between ultimate power and personal responsibility. Self-hosting gives you unparalleled control, significant cost savings, and absolute data privacy by running n8n on your own server. However, this freedom comes with the responsibility of setup, ongoing maintenance, security, and troubleshooting, making it ideal for tech-savvy users, developers, and businesses with strict data policies, while the cloud option offers convenience and ease of use for those who prefer to focus solely on building automations.
As an n8n professional, I get this question all the time: “Should I use n8n Cloud or self-host it?” And my answer is always the same: it depends. There’s no single right answer, but by understanding the benefits and drawbacks, you can find the perfect fit for your needs. Let’s dive in and unpack the n8n self-hosting pros and cons to help you make a confident decision.
The Alluring Pros of Self-Hosting n8n
Let’s be honest, the upsides of going the self-hosted route are incredibly tempting, especially if you’re a builder at heart.
Pro #1: Unbeatable Cost-Effectiveness (It’s Almost Free!)
This is the headline feature for many. The n8n Community Edition, which is what you’ll self-host, is free. Seriously. You get access to about 95% of the platform’s power without paying a single license fee. Your only real cost is the server you run it on.
With providers like Hetzner or DigitalOcean, you can get a capable Virtual Private Server (VPS) for as little as $5-10 per month. Compare that to the monthly subscription fees for n8n’s cloud plans or competitors like Zapier, which can easily scale into hundreds of dollars for high-volume users. Think of it like this: n8n Cloud is like subscribing to a meal-kit service—convenient but with a recurring cost. Self-hosting is like buying the raw ingredients and cooking yourself—it takes more effort, but it’s vastly cheaper in the long run.
Pro #2: Unparalleled Control and Flexibility
When you self-host, you are the master of your domain. There are no artificial limits on the number of active workflows or executions beyond what your server hardware can handle. Need to process a million items in a workflow? Go for it, as long as your server has the RAM and CPU to keep up.
Now, here’s where it gets really interesting for developers. The self-hosted version of n8n allows you to install and use external npm packages directly within your Code nodes. This is a game-changer! You can pull in any library from the JavaScript ecosystem to perform complex data manipulation, interact with unsupported APIs, or anything else you can dream of. This level of extensibility is simply not possible on the cloud plans.
Pro #3: Enhanced Data Privacy and Security
For many businesses, this isn’t just a pro; it’s a requirement. When you self-host, all your workflow data and credentials stay within your own infrastructure. Your sensitive information never touches n8n’s servers or any other third party.
I’ve worked with clients in finance and healthcare where using a multi-tenant cloud automation platform was a non-starter due to compliance reasons like GDPR or HIPAA. Self-hosting n8n was their golden ticket. It allowed them to leverage powerful automation while maintaining a completely isolated and secure environment. You control the security, you manage the access, and you own the data, period.
The Sobering Cons: What’s the Catch?
Of course, all that power comes with responsibility. It’s not all sunshine and cheap servers. Here are the realities you need to face.
Con #1: The Responsibility is All Yours (Setup & Maintenance)
Getting n8n up and running is surprisingly easy if you know your way around Docker. The official documentation is great, and you can be live in under 30 minutes. But the journey doesn’t end there. You are now the system administrator.
You’re responsible for:
- Updates: You need to manually update your n8n instance to get the latest features, bug fixes, and—most importantly—security patches.
- Backups: If your server crashes and you don’t have backups of your workflows and credentials, they’re gone forever. Setting up an automated backup strategy is non-negotiable.
- Uptime: If your server goes down, your automations stop. There’s no support team to call; it’s on you to get things running again.
Con #2: The Dreaded OAuth Configuration
This is a specific but significant pain point. OAuth is the protocol that lets apps securely connect to each other (e.g., letting n8n access your Google Sheets or Microsoft 365 account). On n8n Cloud, the n8n team handles all the complex developer-side setup for these connections. You just click “Sign in with Google,” and it works.
When you self-host, you have to do that setup. This means navigating the often-confusing developer consoles of Google, Microsoft, or Facebook, creating an “OAuth App,” setting redirect URIs, and managing client secrets. It’s not impossible, but it’s tedious and a common source of frustration, even for experienced developers.
Con #3: The Hidden “Cost” of Your Time
While the monetary cost is low, you pay with your time. The hours you spend setting up, updating, troubleshooting, and securing your instance are hours you’re not spending building automations. You have to ask yourself: what is my time worth? If you spend five hours a month managing your server to save $20 on a cloud plan, is that a good trade?
For some, the answer is a resounding yes! They enjoy the tinkering and learning. For others, that time is better spent on their core business, making a managed cloud plan the more economical choice overall.
Comparison: Self-Hosted vs. n8n Cloud
To make it clearer, here’s a side-by-side look:
| Feature | Self-Hosted (Community) | n8n Cloud (Starter Plan) |
|---|---|---|
| Cost | ~$5-15/mo for server | Starts at $20/mo, scales with usage |
| Setup Effort | Moderate (requires Docker/CLI knowledge) | Minimal (sign up and go) |
| Maintenance | Your responsibility (updates, backups) | Fully managed by n8n |
| Data Privacy | Maximum (data stays on your server) | High (n8n is secure, but data is on their cloud) |
| Workflow/Executions | Unlimited (bound by server hardware) | Limited by plan |
| Custom npm Packages | Yes (full flexibility) | No |
| OAuth Setup | Manual (can be complex) | Handled for you (simple) |
So, Should You Self-Host n8n? My Final Verdict
There’s no magic answer. The best choice is deeply personal and depends on your unique situation.
You should seriously consider self-hosting if:
- You’re a developer, a tinkerer, or someone comfortable with the command line and server management.
- You’re on a very tight budget and your time is less valuable than a monthly subscription fee.
- Your organization has strict data privacy and security requirements that forbid using third-party cloud services for sensitive data.
- You need the absolute maximum power and flexibility, especially the ability to use custom code and external libraries.
You should probably stick with n8n Cloud if:
- You’re not technical and the thought of using a command line gives you hives.
- You value convenience and want to get started building automations immediately.
- You or your team prefer a predictable, managed service where support is available and maintenance is someone else’s problem.
For me personally, the control and cost savings of self-hosting are a winning combination, but I also genuinely enjoy that side of the tech world. Your mileage may vary. Weigh the pros and cons against your skills, resources, and priorities, and you’ll find the path that’s right for you.
