Self-hosted n8n: setup, licence, and how it compares with Make and Zapier
You can run n8n on your own server. Its licence lets you use and modify it for your own internal business purposes, but not resell n8n itself as a service.1 For production you need Docker Compose and a PostgreSQL database, and for heavy loads queue mode with Redis.234 The three tools bill in different units: n8n per workflow execution, Make in credits and Zapier in tasks.567 This guide shows when each one pays off. It is written by Tamás Nagy, who designed an automation platform with 100+ n8n workflows.
What the licence allows.
n8n is released under the Sustainable Use License. It says: "You may use or modify the software only for your own internal business purposes or for non-commercial or personal use." You may pass it on to others only free of charge, for non-commercial purposes. Files marked ".ee." need a separate n8n Enterprise License.1
If you are unsure whether your use fits, read n8n's own licence text rather than our summary. We install n8n on the client's own server, in the client's name.
What the free Community edition leaves out.
Without a licence key, n8n runs as the free Community edition.2 It does not include SSO (SAML, LDAP), environments, external secrets, projects, sharing of workflows and credentials, or Git version control. Queue mode and logging are included.8 For a small team this is usually enough. When several departments share one instance, the missing sharing and permissions start to matter.
n8n's Business plan is for self-hosting only: €667 a month (billed annually) for 40,000 executions, with SSO, environments and Git. Companies with fewer than 20 employees may get 50% off through n8n's Start-up Plan.5
What you need to self-host.
- A server in the EU. n8n's documentation has guides per cloud provider, Hetzner among them.2
- Docker Compose. n8n recommends it for production deployments with a database and additional services. Installing with npm is deprecated from n8n 3.0.2
- PostgreSQL instead of the default SQLite. Self-hosted n8n uses SQLite by default. PostgreSQL 17 and 18 are supported (as of July 2026), plus 16 for compatibility.3
- Redis and workers, if you need queue mode. In queue mode the main instance handles timers and webhooks, Redis passes the jobs on, and workers run the executions. Running this over SQLite isn't supported.4
- Someone who updates and backs it up. On your own server that job is yours, or your maintainer's.
We set up self-hosted n8n with Docker and Coolify, for example on Hetzner, with the server in your name.
Cloud or self-hosted: where the data lives.
n8n Cloud stores data in the EU, on servers in Frankfurt.5 On your own EU server, every workflow, credential and execution log stays under your control, and the number of executions does not limit you. In return, updates, backups and security are your job, or your maintainer's.
If your workflows handle customer data, your privacy notice has to say where that data is processed. With your own EU server, the answer is simple.
How n8n, Make and Zapier bill you.
| Tool | Billing unit | Free or entry plan | What counts |
|---|---|---|---|
| n8n Cloud5 | Execution: one run of the whole workflow | Starter €20 a month for 2,500 executions; Pro €50 a month for 10,000 (both billed annually) | The number of steps and the amount of data don't change the count |
| Make6 | Credit | Free plan: 1,000 credits a month | Most module actions cost 1 credit, some AI features more; router and error-handler modules are free |
| Zapier7 | Task | Free: 100 tasks a month, 2-step Zaps only; Professional from $19.99 a month | One successful action step is one task; triggers, filters and failed steps don't count; one MCP tool call uses 2 tasks |
Make used to bill in operations and now bills in credits. Its paid plan prices were not on the pricing page we checked, so we don't quote them.6 Zapier charges a higher per-task rate when you go over your limit, unless you turn that off; yearly billing saves 33%.7
A worked example: a 10-step workflow run 1,000 times.
Take a workflow with 1 trigger and 9 action steps that runs 1,000 times a month. By our estimate from the three pricing pages, that is about 1,000 executions on n8n, about 10,000 credits on Make, and about 9,000 tasks on Zapier, because the trigger is free there.567 It fits within n8n Starter's 2,500 executions, and is far above Make's 1,000 free credits and Zapier's 100 free tasks.
Which one to choose.
- Zapier for a few short automations at low volume, when nobody wants to run a server. Each successful step is a task, so long workflows add up.7
- Make when your scenarios are short and the number of module actions is predictable, because each action uses credits.6
- n8n Cloud for workflows with many steps: it bills per execution, so extra steps cost nothing extra.5
- Self-hosted n8n when the data has to stay on your own EU server, or when volume is high enough that per-execution billing hurts.
How we work with n8n.
Tamás designed an automation platform with 100+ n8n workflows; colleagues built the latest 60 on his patterns. If you choose self-hosting, we install n8n on your EU server with Docker and Coolify, in your name. The AI provider account and the API keys are yours too, and you pay usage directly. The written plan starts with one process and shows how much manual work it replaces.
We build n8n workflows in n8n Cloud or on your own EU server, with AI steps where they help.
Automation and AI