Yes, a local n8n installation can be completely free in terms of software licensing by using the powerful, open-source Community Edition. This version grants you unlimited workflows and executions without charging a dime. However, the term “free” doesn’t mean zero cost. The true n8n local installation cost includes tangible expenses like server hosting and indirect costs such as your setup time, ongoing maintenance, and technical configuration. This article breaks down the complete cost picture, so you can decide if self-hosting is the right move for you.
The Tale of Two Self-Hosted Options: Community vs. Commercial
When people ask about self-hosting n8n, they’re usually talking about one of two things, and it’s crucial to understand the difference. Think of it like this: n8n gives you a professional-grade kitchen.
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The Community Edition: This is the free kitchen. It has all the high-end appliances you need—stoves, ovens, mixers (unlimited workflows, 500+ integrations, code nodes). You can cook as many gourmet meals (automations) as you want, for as many people as you want, and you don’t pay a license fee. It’s available right on GitHub for you to install.
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The Paid (Enterprise) Edition: This is the same professional kitchen, but it comes with a Michelin-star support team on call 24/7, specialized industrial equipment (like SAML/SSO for security), and a system for managing your whole team of chefs (advanced user roles and permissions).
Most individuals, developers, and small businesses will find the Community Edition to be more than enough. You get the core power of n8n without the enterprise-level price tag. The real question isn’t about the software license, but about the other costs involved.
Breaking Down the Real n8n Local Installation Cost
Let’s be honest, nothing in life is truly 100% free. While the n8n Community Edition license is, the total cost of ownership involves a few key factors. Let’s get into the nitty-gritty.
The “Free” Part: The n8n Community License
This is the star of the show. With the Community Edition, governed by a fair-code license, the software itself is free for most use cases. (Basically, you can’t build a direct competitor to n8n’s cloud service and sell it). Here’s what you get for $0:
- Unlimited Active Workflows: Build as many automated processes as you can dream up. No arbitrary limits.
- Unlimited Workflow Executions: Run your workflows a million times a month. n8n doesn’t charge you per run like many competitors charge per “task” or “operation.”
This is a huge deal. A single n8n workflow with multiple steps counts as one execution. On other platforms, that same workflow could burn through hundreds or even thousands of expensive “tasks.”
The Not-So-Free Part: Indirect & Hidden Costs
Now, here’s where your wallet and your calendar come into play. These are the real costs you need to budget for.
- Server Hosting: n8n needs a place to live. You’ll need to rent a virtual private server (VPS). Luckily, this is incredibly affordable. Providers like Hetzner, Vultr, or DigitalOcean offer servers capable of running n8n for as little as $5 to $25 per month. This is your primary recurring financial cost.
- Time & Technical Skill (Your Sweat Equity): Your time has value! While n8n’s Docker setup is famously easy, it’s not a one-click process. You’ll spend time on initial installation, setting up a domain, and configuring a reverse proxy like Nginx for secure access. Plan for a few hours of initial setup and occasional maintenance for updates.
- Third-Party Configuration Headaches: When you use a managed cloud service, they handle all the tricky API authentications. When you self-host, that’s your job. For example, connecting to Google Sheets requires you to create a project in the Google Cloud Console, enable APIs, and configure an OAuth consent screen. It’s not impossible—n8n has great docs for it—but it’s a “cost” in terms of time and complexity that you don’t have on their cloud plans.
- Support: The n8n community on the forums and Discord is amazing and incredibly helpful. But it’s community support. You’re not guaranteed an instant answer. If your business relies on an automation and it breaks, you’re relying on the community’s goodwill, not a Service Level Agreement (SLA).
Real-World Example: My $5/Month Automation Powerhouse
To make this tangible, let me walk you through my own experience. I wanted to automate some reporting for my small business. Instead of paying $50/month or more for a different service, I chose to self-host n8n.
I spun up the cheapest server on Hetzner, which costs me around €5 (about $5.40) per month. Using the provided Docker command, I had n8n running in under 10 minutes. The biggest time sink was setting up my domain with a reverse proxy, which took another 30 minutes of following a tutorial. The first time I had to connect to the Google Ads API, I probably spent a good 45 minutes inside the confusing Google Cloud dashboard getting the credentials right.
So, my total startup “cost” was about 90 minutes of my time, and my recurring cost is just over $5 a month. For that price, I’m running over 20 active workflows that save me hours of manual work every single week. The value is simply off the charts.
When Should You Pay for a Self-Hosted n8n Plan?
The free Community Edition is a dream for many, but there are clear signs when upgrading to a paid plan like Enterprise makes sense. You should consider paying when your organization’s needs for collaboration, security, and support become critical.
| Feature | Community Edition (Self-Hosted) | Enterprise Plan (Self-Hosted) |
|---|---|---|
| Software License Cost | $0 | Custom Quote (Annual Contract) |
| Ideal User | Individuals, developers, startups, SMBs | Medium-to-large businesses, teams with compliance needs |
| User Management | Single Owner account | Advanced role-based access control (RBAC) |
| Security & Auth | Standard credentials management | SSO (SAML/LDAP), external secret store integration |
| Version Control | Manual backups (or community node workarounds) | Native Git-based version control |
| Support | Community forums & Discord | Dedicated support with a guaranteed SLA |
The Bottom Line: Is Self-Hosting Worth It?
So, is the n8n local installation free? In spirit, yes. The core software is a gift to the automation world. However, in practice, it will cost you a few dollars a month for a server and a few hours of your time to get started.
The trade-off is spectacular. For a minimal investment, you get an endlessly powerful, flexible, and scalable automation platform that you completely control. It puts you in the driver’s seat, free from the task-based pricing models that punish complexity.
If you’re comfortable with a command line and willing to learn a little, self-hosting n8n is one of the best deals in tech. The question you should ask yourself isn’t “How much does it cost?” but rather, “Am I ready to trade a bit of initial setup time for nearly limitless automation power?”
